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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Above Full Employment Equilibrium

Definition:

Ever heard a politician talking about how they're going to create "more jobs"?

Everyone thinks that more jobs = good, but according to economists (those fancy people in fancy suits), it's possible to have too much of a good thing. When almost everyone has a job (even your Uncle Joe, who's been couch surfing since 2004), we produce more stuff; and when we as a country make more stuff than we usually do, we have what's called above full employment equilibrium.

When that happens, the economy is basically doing too well and inflation will go nuts, meaning your money will be worth less.