Quick Facts The PPP is Purchasing Power Parity Purchasing power parity is used by macro-economic analysts to compare different countries' currencies through a "basket of goods" method. Purchasing power parity allows us to compare standard of living and...
What is a 'Zero Balance Account - ZBA' A zero balance account (ZBA) is a checking account in which a balance of zero is maintained by automatically transferring funds from a master account in an amount only...
What is 'Half-Life' Half-life represents a date in the future when half of the total principal of a mortgage-backed security (MBS) will be paid off. It can also represent the date when half of a person's private...
What is 'Tactical Asset Allocation - TAA' Tactical asset allocation is an active management portfolio strategy that shifts the percentage of assets held in various categories to take advantage of market pricing anomalies or strong market sectors....
Creative destruction, sometimes called Schumpeter's gale, is an idea people studying economics theory say may lead to innovation in the business cycle. Karl Marx argued the devaluation of wealth in periods when capitalism is going through a financial crisis...
What is 'M0' M0 is a measure of the money supply which combines any liquid or cash assets held within a central bank and the amount of physical currency circulating in the economy. In the United Kingdom,...
The money supply has different components and M1 is the measure of the component that includes the physical money held by public. It is the asset individuals or businesses can directly use for investment or for making payments of...
What are 'Tag-Along Rights' Tag-along rights, also referred to as "co-sale rights," are contractual obligations used to protect a minority shareholder, usually in a venture capital deal. If a majority shareholder sells his take, it gives the...
M2 is defined as a “measure of money supply that includes checking deposits (M1) cash as well as (what is colloquially referred to as) near money”. Near Money “Near money" in the case of M2 includes mutual funds available in the money markets, also...
What is 'M3' M3 is a measure of the money supply that includes M2 as well as large time deposits, institutional money market funds, short-term repurchase agreements and other larger liquid assets. The M3 measurement includes assets...