Gold Standard: Definition, How It Works, and Example
What Is the Gold Standard? The gold standard is a fixed monetary regime under which the government’s currency is set and may be freely converted into gold. It can also…
What Was the Great Depression?
What Was the Great Depression? The term “Great Depression” refers to modern history’s most significant and prolonged economic recession. The Great Depression ran between 1929 and 1941, the same year…
Keynesian Economics Theory: Definition and How It’s Used
What Is Keynesian Economics? Keynesian economics is a macroeconomic theory of total spending in the economy and its effects on output, employment, and inflation. British economist John Maynard Keynes developed…
What Do the Federal Reserve Banks Do?
In 1913, the Federal Reserve Act established the Federal Reserve System (FRS), an independent governmental entity that would serve as a central bank to the U.S. government. In addition to…
What is the U.S. Treasury?
The U.S. Treasury, created in 1789, is the government department responsible for issuing all Treasury bonds, notes, and bills. The Internal Revenue Service (IRS), the U.S. Mint, the Bureau of…
What is the Federal Open Market Committee (FOMC): What It Is and Does
What Is the Federal Open Market Committee (FOMC)? The term Federal Open Market Committee (FOMC) refers to the branch of the Federal Reserve System (FRS) that determines the direction of…
Reaganomics: What It Was, Major Goals, and Long-Term Impact
What Is Reaganomics? Reaganomics is a popular term referring to the economic policies of Ronald Reagan, the 40th U.S. president (1981–1989). His policies called for widespread tax cuts, decreased social…
Federal Reserve Board (FRB)
What Is the Federal Reserve Board (FRB)? The Board of Governors of the Federal Reserve System, also known as the Federal Reserve Board (FRB), is the governing body of the…
Supply-Side Economics
What Is Supply-Side Economics? Supply-side economics is a theory that maintains that increasing the supply of goods and services is the engine of economic growth. It advocates tax cuts to…
What Is a Laissez-Faire Economy, and How Does It Work?
What Is Laissez-Faire? Laissez-faire is an economic theory from the 18th century that opposed government intervention in business affairs. The driving principle behind laissez-faire, a French term that translates to…