What are some of the formal global financial matters that shape our everyday economic lives?
There are many important financial decisions, events, and other economic issues that make a difference in the lives of everyday citizens. In light of this, let me name a few of them.
First, what has been in the headlines of late is interest rates. Central banks around the world have great power to control interest rates. Lately interest rates have been cut or kept at a low rate. This allows for people and companies to borrow at a lower rate. This stimulates more spending and the theory states that money trickles to other areas of the economy. If the central banks increase rates, then people will borrow less, companies will hire less, and it can adversely hurt the economy.
Second, the price of oil is another important issue. As you can imagine in a global economy, people need to travel, import, an export. All of this requires oil. So, if the price of oil is low, companies and citizens save a lot of money in all areas of life.
Just by keeping your eyes on these two economic issues, you will learn a tremendous amount.