Economics is, at its core, the study of diverse financial systems and how they interact. It attempts to make sense of the ups and downs of various markets, the buying patterns of consumers, and the impacts of politics on the money in people’s pockets. But, at its heart, the academic study of economics relies on certain core principles that have not greatly changed in several hundred years.
Unemployment claims rose and productivity weakened in the United States while the Federal Reserve announced falling growth expectations were encouraging it to maintain a loose monetary policy.
The Reserve Bank of India made an unexpected move by lowering lending rates by a quarter percent to help the government foster economic stability. This marks the second interest rate cut since January of this year.
The United Kingdom has been engaging in a surprising program that has raised the “personal allowance,” or amount one can earn before paying income taxes, to record highs. The result of this program has left nearly 4 million people out of the annual income tax cycle and acted as a tax break for 27 million. But, as the nation struggles with sluggish economic growth, economists wonder if this politically popular measure makes good financial sense.
Equities rallied in the United States as the Federal Reserve hinted that interest rates will not rise in the near term, and that the Fed continues to wait until the labor market is stronger.
Rwanda’s economy grew from 4.6 percent to 7.0 percent in the fourth quarter. Headway in farming, the service industry and the industrial sector underpinned growth. The country’s central bank expects 6.7 percent growth for 2015.
For six years, the US economy has grown. Unemployment has slowly dropped and overall the health of the American economy has returned to levels comparable to those before the housing boom and bust. Yet, in a turn that has left many economists scratching their heads, salaries have not risen in conjunction with the drop in unemployment as predicted.
A fall in unemployment rate has not caused more demand for residences, as housing starts suddenly declined in February.
Private housing starts fell to a seasonally adjusted annual rate of 897,000 in February, far below expectations of 1.04 million starts, according to a report released by the U.S. Census Bureau.
China has ordered 600,000 tons of corn from Ukraine for 2015. The Chinese previously rejected the U.S. brand in 2014, which contained an unacceptable genetically modified trait.
A recent report has found that homebuilders have lost confidence in the American housing market in March 2015. The drop has surprised many analysts who see the market on a long-term growth trend.
