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Critics of the asset-based economy contend that it is highly flawed because it depends on the continuation of low interest rates to stimulate the borrowing that will finance the purchase of assets at a rate sufficient to sustain the upward trend in asset prices. Thus, they reason, the model is highly vulnerable to the perhaps inevitable ...
Economists commonly use the term recession to mean either a period of two successive calendar quarters each having negative growth [clarification needed] of real gross domestic product [1] [2] [3] —that is, of the total amount of goods and services produced within a country—or that provided by the National Bureau of Economic Research (NBER): "...a significant decline in economic activity ...
In monetary economics, inside money is money issued by private intermediaries (i.e., commercial banks) in the form of debt . [1] This money is typically in the form of demand deposits or other deposits and hence is part of the money supply. The money, which is an asset of the depositor but coincides with a liability of the bank, is inside money ...
An asset in economic theory is a durable good which can only be partially consumed (like a portable music player) or input as a factor of production (like a cement mixer) which can only be partially used up in production. The necessary quality for an asset is that value remains after the period of analysis so it can be used as a store of value ...
A fixed asset, often referred to as a tangible asset or property, plant, and equipment (PP&E), is a long-term asset that holds value over time and can be used to generate income.
In the neoclassical school of economics, the classical dichotomy dictates that real and nominal values in the economy can be analysed distinctly. Thus, the real sector value is determined by an actor's tastes and preferences and the cost of production, while the monetary sector only plays the part of influencing the price level, so in this simplified example the role of the supply and demand ...
An "asset-backed security" is sometimes used as an umbrella term for a type of security backed by a pool of assets, [1] and sometimes for a particular type of that security – one backed by consumer loans [2] or loans, leases or receivables other than real estate. [3]
Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans, or credit card debt obligations (or other non-debt assets which generate receivables) and selling their related cash flows to third party investors as securities, which may be described as bonds, pass-through securities, or collateralized debt ...