Japan, deflation, and low-rate environments explained.
You’ve probably heard someone throw around the term “liquidity trap” and just moved on. Fair enough, it does sound like one of those textbook ideas economists obsess over. But here’s the thing. It actually matters, and more than you might think.
When markets start acting up or the headlines go full “crisis mode,” you’ll often hear investors shifting into so-called safe-haven assets. Gold, yen, and the dollar. But what exactly makes them “safe,” and why do people run to them when everything else feels like it’s falling apart?
Every time the economy wobbles or the stock market dives, the same terms get tossed around: recession and market crash. Sometimes, they even show up in the same headline – as if they’re interchangeable. But here’s the thing: they’re not.
Ever wonder why the stock market reacts so strongly when someone from the US Federal Reserve speaks? Or why the value of the euro shifts after a decision from the European Central Bank (ECB)?
EC Markets, a globally recognised, multi-regulated broker offering a wide range of investment products, is pleased to announce that it has obtained regulatory approval from the Securities and Commodities Authority (SCA) of the United Arab Emirates. This milestone further confirms the company’s long-term commitment to the Middle East.