What causes economic recessions?

Economic recessions are primarily caused by a significant decline in aggregate demand or external shocks. Factors such as financial crises, rising interest rates, and a loss of consumer confidence can lead to reduced spending and investment, triggering a recession. Additionally, supply-side shocks, ...

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What’s the best explanation for the US having so much more real economic growth without more inflation than the other countries in the G7?

The best explanation for the US having more real economic growth without more inflation than the other countries in the G7 is that the US has seen better-than-expected consumer spending, relatively low consumer debt burdens, remnants of pandemic stimulus and savings, and a strong trajectory for infl...

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What is Zirp?

ZIRP, or zero interest rate policy, is a method used by central banks to stimulate growth by keeping interest rates close to zero. It has been employed by countries like Japan, the United States, and the United Kingdom to combat economic challenges, such as deflation and slow growth, following a fin...

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What is section 174?

Section 174 refers to a provision in the tax code that allows businesses to deduct or amortize certain research and development (R&D) costs. It applies to all taxpaying entities, including corporations, small businesses, startups, and sole proprietorships. Qualifying expenses include salaries, suppl...

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