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What is the Official Reserves Account (ORA), and why is it more important for countries under a fixed exchange rate regime than for ones under a floating exchange rate regime?
Recession
A significant decline in economic activity spread across the economy, lasting more than a few months.
Inflation
The measure of how quickly the general price level of goods and services rises, depleting the ability to purchase.
Market Risk Premium
The supplementary income expected by investors when they choose to invest in a volatile market portfolio rather than in secure, riskless options.
Risk-Free Rate
The return on investment with zero risk, typically represented by yields on government securities.
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