What’s in the News
* CAGR – Compound Annual Growth Rate
* Average yearly growth with compounding.
* Example: China’s GDP from $4T in 2010 to $18T in 2025 → ~11% CAGR.
* GDP – Gross Domestic Product
* Total value of goods/services produced.
* Example: US nominal GDP ~$28T in 2025; India’s real GDP growth ~6.5%.
* PPP – Purchasing Power Parity
* Adjusts for cost differences.
* Example: India’s PPP GDP ranks 3rd globally vs. 5th nominal.
* Inflation
* Rising prices.
* Example: US CPI hit 9% in 2022; target 2%.
* Deflation
* Falling prices.
* Example: Japan’s “lost decades” with near-zero inflation.
* Trade Balance
* Exports minus imports.
* Example: China’s $800B+ surplus in 2025.
* Current Account
* Trade + income + transfers.
* Example: US chronic deficit ~$1T yearly.
* FDI – Foreign Direct Investment
* Long-term foreign investment.
* Example: Tesla’s $5B Shanghai factory.
* Reserves
* Central bank forex/gold holdings.
* Example: China’s ~$3.3T reserves in 2025.
* Exchange Rate
* Currency value vs. another.
* Example: Yuan pegged loosely to dollar basket.
* Interest Rate
* Borrowing cost.
* Example: Fed funds rate ~4.5% in late 2025.
* Central Banking
* Manages money supply/rates.
* Example: PBOC cuts rates to stimulate growth.
* Bonds vs. Notes vs. Treasuries
* Long-term debt instruments.
* Example: US 10-year Treasury note yields ~4%.
* Gilts
* UK government bonds.
* Example: 10-year gilt yield ~4.2% in 2025.
* Commercial Paper
* Short-term corporate debt.
* Example: Apple issues 90-day paper at low rates.
* Muni Bonds
* Local government bonds.
* Example: New York City bonds for infrastructure.
* Corp Bonds
* Company debt.
* Example: Tesla high-yield bonds for expansion.
* Sovereign Debt
* Government borrowing.
* Example: US debt ~$36T in 2025.
* Fed Window
* Emergency bank loans.
* Example: Used heavily in 2020 crisis.
* Different Interest Rates
* Benchmarks for lending.
* Example: Prime rate ~7.5%; SOFR replaces LIBOR.
* Ratings Agencies
* Rate debt safety (AAA to junk).
* Example: S&P downgraded US from AAA in 2011.
* Note: Over-rated subprime bonds pre-2008, worsening crisis.
* Fiscal Policy
* Government spending/taxes.
* Example: US stimulus checks in 2021.
* Monetary Policy
* Central bank rate/money actions.
* Example: ECB rate hikes to fight inflation.
* Recession
* Two quarters negative growth.
* Example: US 2020 COVID recession.
* Depression
* Severe prolonged downturn.
* Example: 1930s Great Depression.
* In a multipolar world, these terms with examples make tracking BRICS economies straightforward.
