Financial economics

thumb|upright=1.6|Global rates of inflation in October 2025 among International Monetary Fund members thumb|upright=1.6|UK and US monthly inflation rates from January 1989

discipline of economy studying the effects of psychological, cognitive, emotional, cultural and social factors on decisions

total debt a country owes to foreign creditors

thumb|Door to door fundraising frequently involves a hand-held collection box. Fundraising or fund-raising is the process of seeking and gathering voluntary financial contributions by engaging individuals, businesses, charitable foundations, or governmental agencies. Although fundraising typically refers to efforts to gather money for nonprofit organizations, it is sometimes used to refer to the identification and solicitation of investors or other sources of capital for-profit enterprises.

accounting term for the intangible asset recognized when a firm is purchased as a going concern

in business: the difference between the sale price and the production cost of a product is the unit profit. In economics, the sum of the unit profit, the unit depreciation cost, and the unit labor cost is the unit value added.

possession of skills and knowledge to make informed and effective personal financial decisions

Solvency, in finance or business, is the degree to which the current assets of an individual or entity exceed the current liabilities of that individual or entity. Solvency can also be described as the ability of a corporation to meet its long-term fixed expenses and to accomplish long-term expansion and growth. This is best measured using the net liquid balance (NLB) formula. In this formula, solvency is calculated by adding cash and cash equivalents to short-term investments, then subtracting notes payable. There exist cryptographic schemes for both proofs of liabilities and assets, especial

remuneration paid for brokering a sale or other transaction

term

tendency of a financial market to move in a particular direction over time

branch of economics concerned with financial or monetary transactions

type of regulation on commercial banks

financial services between nations

Indexation is a technique to adjust income payments by means of a price index, in order to maintain the purchasing power of the public after inflation, while deindexation is the unwinding of indexation. It is often used to make sure regular payments, such as pension payments keep pace with inflation, so that they have the same value in real terms over time.

minimum amount of money by which the expected return on a risky asset must exceed the known return on a risk-free asset

thumb|350px|right|Share in Gross domestic product|GDP of US financial sector from 1860 to 2008

equilibrium state for interest rates in two countries/currencies

process of estimating what an asset is financially worth

theorem that in the absence of taxes, bankruptcy costs, agency costs, and asymmetric information, and in an efficient market, the enterprise value of a firm is unaffected by how that firm is financed

process of determining economic value of an owner's interest

Stock Market

ratio of a bank's capital to its risk

in finance markets

amount owed by individual consumers (as opposed to amounts owed by businesses or governments)

benefit distributed to the owner of a factor of production

risk of investing or lending in a country, arising from possible changes in the overall business environment

in finance, a measure of the ex-ante return to a holder of the security

aspect of monopolistic markets

predictability in a financial market that seems to be inconsistent with (typically risk-based) theories of asset prices

Biflation (sometimes mixflation, indeflation, or compartflation) is a state of the economy, in which the processes of inflation and deflation occur simultaneously in different parts of the economy. The term was first coined in 2003 by F. Osborne Brown, a senior financial analyst at Phoenix Investment Group, and has later been widely used in the media. During the biflation, there is a simultaneous rise in prices (inflation) for commodities bought out of the basic income (earnings), and a parallel fall in prices (deflation) for goods bought mainly on credit. Biflation may be seen in the CPI comp

one of the forms of risk management mostly practiced by insurance companies, with contributions and liabilities shared among multiple entities

types of securities

interest rate at which banks lend to customers with good credit

process of selecting a portfolio

complications businesses and governments may face as a result of political decisions

Agflation (or agrarian inflation) is an economic phenomenon of an advanced increase in the price for food and for industrial agricultural crops when compared with the general rise in prices or with the rise in prices in the non-agricultural sector. The term was increasingly used in the analytical reports, for example, by the investment banks Merrill Lynch in early 2007 and Goldman Sachs in early 2008. They used the term to denote a sharp rise in prices for agricultural products, or, more precisely, a rapid increase in food prices against the background of a decrease in its reserves, a relative

economic bubble in the United States in the 2000s and 2010s

function linear in one argument (generally the numeraire), used in economics and consumer theory

journal

part of the total government debt in a country that is owed to lenders within the country

stock market speculator

In economics, finance, and psychology, risk-seeking (also called risk-loving or risk preference) refers to a behavioral tendency to prefer uncertain options with potentially higher rewards over safer alternatives with lower expected value. In other words, risk-seeking individuals derive greater satisfaction or perceived utility from taking chances, even when the probable outcome may be less favorable. This is a big issue seen in stock trading, for example, in where people take the risk to either hold or sell their stocks depending on past market trends.

Exchange rate of a currency on a future date

theory of how equities and debt instruments are valued

future yield on a bond

Necessary and sufficient conditions for a market to be arbitrage free and complete

return on investment metrics

Broad term for all forms of value in businesses

branch of finance

term within finance

forex arbitrage across three currencies

strategy that allows an investor to maintain an exposure to the upside potential of a risky

foreign exchange market

property of any kind held by an assessee

new equilibrium price of a commodity

financial economics

Economic paradox on market efficiency

Cryptoeconomics is an evolving economic paradigm for a cross-disciplinary approach to the study of digital economies and decentralized finance (DeFi) applications. Cryptoeconomics integrates concepts and principles from traditional economics, cryptography, computer science, and game theory disciplines. Just as traditional economics provides a theoretical foundation for traditional financial (a.k.a., Centralized Finance or CeFi) services, cryptoeconomics provides a theoretical foundation for DeFi services bought and sold via fiat cryptocurrencies, and executed by smart contracts.