How to talk about the economy

How to talk about the economy

• GDP -> gross domestic product

  1. This is the total value, the total monetary value of goods and services within a country.

• fiscal

  1. anything to do with money, anything to do with financial matters, especially when we’re talking about taxes.
  2. fiscal year : it’s the beginning of its tax year to the end of its tax year.

• quarter

  1. three months
  2. first quarter of the year

• currency

  1. this is the money that is used in a country or a region.

• budget

  1. it can be a noun or a verb. A “budget” or “to budget”.
  2. means to make a plan on how to spend a certain a mount of money.

• deficit / surplus

  1. deficit: they need to spend more money than they have.
  2. surplus: you have more money than you need for the budget.

• inflation / deflation

  1. inflation: “inflation” is when prices of good and services go up but wages stay the same. So, basically, the purchase power of the individual goes down.
  2. deflation: That’s when prices go down and the value of your dollar or your currency goes up.
  3. Both situations are not good, a little bit of each is okay. Too much of each is bad for the economy.
  4. Inflation, prices go too high, people can’t afford things; deflation, companies don’t want to produce.

• stagnation

  1. ”Stagnation” means there’s hardly any movement, up or down. It means everything stays more or less the same.

• credit(rating)

  1. the ability to borrow money.
  2. you have a bad credit

• debt

  1. ”debt” means owning. You own money to to someone, usually the bank

• recession

  1. the economy is in decline, usually if the economy is in decline for two consective quarters, then you can consider the economy to be in recession.

• depression

  1. if the recession continues for a long time, may be a couple of years, then you have a depression.

• bubble

  1. We have a housing bubble, it means the prices of the houses, in this particular case, are growing, growing, growing. There is no real reason that they should be growing.
  2. and then suddenly they pop or they burst
  3. the burst will always come

• boom / bust

  1. boom : very good, growth
  2. bust : bad, shrinking
  3. boom up; bust down