News glossary

Short definitions of terms you'll meet in the news, with links to fuller explainers.

By Newsei · Updated October 19, 2026

Article 5

Article 5 is the collective-defence clause in the North Atlantic Treaty, the founding agreement of NATO. It says that an armed attack against one or more members in Europe or North America is considered an attack against them all, and that each ally will assist by taking such action as it deems necessary, including potentially armed force. The clause does not prescribe an identical military response by every member. NATO invoked Article 5 after the September 11, 2001 attacks in the United States; invocation is distinct from the particular actions allies subsequently chose. Read the explainer

Artificial general intelligence (AGI)

Artificial general intelligence, often shortened to AGI, is a hypothetical category for an AI system able to perform a wide range of intellectual tasks at a level comparable to or beyond human ability. There is no universally accepted definition or agreed test for AGI, and no established system is recognized as having achieved it. Existing AI tools can be highly capable in specific tasks while remaining unreliable or limited in others. Claims that a system is “general” should therefore be assessed against a stated definition, evidence across tasks, and independent evaluations rather than a company’s label alone. Read the explainer

Basis point

A basis point is one hundredth of a percentage point, or 0.01 percentage point. It is commonly used to describe small changes in interest rates, bond yields, and other financial percentages. A rise from 4.00% to 4.25% is an increase of 25 basis points, equivalent to 0.25 percentage point. Basis points help avoid ambiguity between a percentage change and a percentage-point change. For example, a rate rising from 4% to 5% increases by one percentage point, but by 25% relative to its original level. The context determines which comparison is meaningful.

Central bank

A central bank is a public institution responsible for monetary policy and, in many countries, aspects of financial stability and currency issuance. It may set a benchmark policy rate, influence broader borrowing costs, supervise certain financial institutions, or act as a lender of last resort. Its mandate and degree of independence vary by country. Central banks typically seek to maintain price stability and may also support employment or economic growth, depending on their legal framework. Their decisions influence the economy but do not directly determine every loan rate, exchange rate, or price. Read the explainer

Consumer price index (CPI)

The consumer price index, or CPI, measures changes over time in the prices of a defined basket of goods and services purchased by households. Statistical agencies collect prices and apply weights reflecting typical spending patterns. The index is used to track inflation, adjust some payments, and compare price changes, but it is not a measure of every household’s personal cost of living. Spending patterns differ, and the basket may not reflect an individual’s circumstances. CPI methods, coverage, and housing treatment vary between countries, so comparisons require attention to definitions and reference periods. Read the explainer

Core inflation

Core inflation is a measure of price change that excludes selected volatile categories, commonly food and energy, to help assess underlying inflation trends. It is not a separate price level or a claim that excluded items do not matter to households. Food and energy costs can change sharply because of weather, supply disruptions, or geopolitical events, which may temporarily obscure broader patterns. Central banks and analysts use core measures alongside headline inflation and other indicators. The exact categories excluded differ, and core inflation is a diagnostic tool rather than a complete description of household expenses. Read the explainer

Electoral college

The Electoral College is the United States system for formally electing the president and vice president. Each state receives electors based on its representation in Congress, and the District of Columbia has three electors under the Twenty-third Amendment. There are 538 electors in total; a candidate generally needs a majority of 270 electoral votes to win. Most states award electors according to the statewide popular vote, though allocation rules differ in Maine and Nebraska. The system is distinct from a nationwide direct popular vote, and disputes or contingent elections are governed by constitutional and statutory procedures. Read the explainer

Export controls

Export controls are government restrictions or licensing requirements governing the transfer of specified goods, software, technology, or services to particular destinations, users, or uses. They may address national security, foreign policy, human rights, or non-proliferation objectives. Rules can apply to physical exports, digital transfers, technical support, or re-exports through third countries. A control is not necessarily a complete ban: scope, exceptions, license requirements, and enforcement vary. Semiconductor and AI coverage often refers to controls on advanced chips or manufacturing equipment. The relevant regulation, effective date, destination, and product classification determine what is permitted. Read the explainer

First-past-the-post

First-past-the-post is an electoral system in which voters select a candidate in a district and the candidate with more votes than any rival wins the seat. The winner does not need more than half of all votes; a plurality is sufficient. The system is used in countries including the United Kingdom and Canada for many legislative elections. It can produce a legislature in which a party’s share of seats differs substantially from its share of the national vote, because results are decided district by district. The term describes the seat-winning rule, not every aspect of an election. Read the explainer

GDP

Gross domestic product, or GDP, is the monetary value of final goods and services produced within a country’s borders during a specified period. It is commonly used to describe the size and growth of an economy. Nominal GDP uses current prices; real GDP adjusts for price changes to estimate changes in the volume of production. GDP per person divides output by population but does not show how income is distributed or measure well-being comprehensively. Statistical agencies estimate GDP from production, income, and expenditure data, and may revise early estimates as more information becomes available.

GPU

A graphics processing unit, or GPU, is a processor designed to perform many calculations in parallel. GPUs were developed to accelerate graphics work, but their parallel architecture is also useful for scientific computing, machine learning, and other workloads. They differ from central processing units in design and are not automatically faster for every task. Performance depends on the chip, memory, software, data movement, power, and workload. AI systems may use GPUs during both training and operation, although other specialized accelerators can also be used. The term identifies a class of processor, not a guarantee of a particular capability. Read the explainer

Large language model (LLM)

A large language model, or LLM, is a machine-learning model trained on large collections of text, and sometimes additional data, to process and generate language. Many LLMs generate text by estimating likely next tokens based on context. They can support tasks such as summarization, drafting, translation, and coding, but fluent output is not proof of factual accuracy. Models may make unsupported claims, reflect biases in data, or fail when conditions differ from training. “Large” can refer to model size or training resources, but has no single universal threshold. Capabilities depend on version, tools, instructions, and evaluation. Read the explainer

Minority government

A minority government is formed by a party or coalition that does not control more than half the seats in the legislature. It may govern alone, but needs support from members of other parties or independents to pass legislation and, in parliamentary systems, maintain confidence. Support can be negotiated issue by issue or through formal agreements, and may change over time. A minority government is not necessarily unstable, nor does it automatically mean the largest party has a majority of votes nationwide. The consequences depend on constitutional conventions, election rules, party arrangements, and the legislature’s procedures. Read the explainer

Nuclear fusion

Nuclear fusion joins light atomic nuclei to form heavier nuclei, releasing energy under suitable conditions. Fusion reactions power the Sun and other stars. On Earth, researchers seek to sustain fusion using approaches such as magnetic confinement or powerful lasers, but the fuel must be heated to extreme conditions and the process is technically demanding. Experimental facilities have achieved important research milestones, yet no commercial fusion power plant currently supplies electricity to the grid. A reported scientific energy gain may refer only to energy delivered to fuel or a target, not the total energy consumed by the facility. The measurement boundary matters. Read the explainer

Policy rate

A policy rate is a benchmark interest rate set or targeted by a central bank to guide monetary conditions. It influences short-term market rates and can affect the cost of mortgages, business loans, savings, and government borrowing, though pass-through varies. Central banks change policy rates in response to economic conditions and their mandates, including inflation and employment objectives. A policy-rate increase does not mean every borrowing rate rises by the same amount, and effects take time. Names and operating methods differ among central banks; the term is a general label for the rate used to implement monetary policy. Read the explainer

Proportional representation

Proportional representation is a family of electoral systems designed to allocate seats broadly in proportion to parties’ or candidates’ vote shares. Methods vary: some use party lists, while others use ranked preferences or multi-member districts. Thresholds and allocation formulas affect which parties gain seats. Proportional systems can represent a wider range of political preferences than single-member plurality systems, but their outcomes depend on design and political context. The phrase does not imply exact proportionality in every result, nor does it determine how governments are formed. Coalition negotiations are common in some systems but are not a necessary feature of every proportional arrangement. Read the explainer

Quantitative easing

Quantitative easing, or QE, is a monetary policy in which a central bank buys substantial quantities of financial assets, often government bonds, to influence longer-term interest rates and financial conditions. Purchases can increase demand for those assets and lower their yields, while adding reserves to the banking system. QE is typically used when conventional policy-rate cuts are limited or when policymakers seek additional support. Its effects depend on financial conditions and expectations; it does not guarantee that banks will lend more or that households will borrow. QE differs from direct government spending, although both can affect the economy. Read the explainer

Recession

A recession is a significant decline in economic activity that is broad across the economy and lasts more than a brief period. Analysts examine indicators such as output, employment, income, production, and sales. In the United States, a common informal rule describes two consecutive quarters of falling real GDP, but that is not the sole official test used by the National Bureau of Economic Research. Definitions and dating methods differ across countries. A recession can involve unequal effects across industries and communities, and GDP data may be revised. The term should not be applied to every slowdown or isolated decline in one indicator. Read the explainer

Retaliatory tariff

A retaliatory tariff is an import tax imposed by a government in response to tariffs or other trade measures imposed by another government. It may target selected goods to exert economic or political pressure, encourage negotiations, or respond under trade rules. The importing country’s government collects the tax, though costs may be shared among importers, businesses, consumers, and suppliers through price and market changes. Retaliation can prompt further measures and affect firms beyond the governments involved. Whether a tariff is legally justified depends on the applicable trade agreements and circumstances; the label itself does not establish legality. Read the explainer

Rules of origin

Rules of origin determine the country to which a traded product is legally attributed for customs purposes. They help establish which tariffs, quotas, trade-agreement preferences, or trade remedies apply. Criteria can be non-preferential or preferential and may use the location of a product’s last substantial transformation, a change in tariff classification, or a required share of local value. A product’s shipping location or the nationality of its seller does not necessarily determine its origin. Complex supply chains can make origin assessments difficult, and the applicable agreement or customs law specifies the relevant test and documentation. Read the explainer

Stagflation

Stagflation describes a combination of weak or stagnant economic growth, high inflation, and often elevated unemployment. It poses a policy challenge because measures that reduce inflation can restrain demand, while measures intended to support activity may add price pressure, depending on conditions. The term became widely associated with economic difficulties in the 1970s, including oil shocks, but it can be used more broadly. There is no single numerical threshold that defines stagflation. Analysts look at trends in inflation, output, and employment over time and consider supply disruptions, expectations, and policy rather than treating one quarter’s data as conclusive. Read the explainer

Tariff

A tariff is a tax or duty imposed on imported goods, usually collected by the importing country’s customs authority. Tariffs may be charged as a percentage of value, as a fixed amount per unit, or through a combination. They can raise the cost of imported products and affect domestic producers, consumers, and supply chains. The importer is legally responsible for paying the duty, though the economic cost may be passed on or absorbed in different ways. Tariffs differ from quotas and other trade restrictions. The rate depends on product classification, country of origin, and applicable trade rules. Read the explainer

Trade deficit

A trade deficit occurs when the value of a country’s imports exceeds the value of its exports over a specified period and under a stated accounting measure. It may refer to goods alone or to goods and services combined. A trade deficit is not the same as a government budget deficit. It can reflect domestic demand, saving and investment patterns, exchange rates, and global supply chains, and does not by itself show whether an economy is healthy or weak. A bilateral deficit with one trading partner also does not summarize a country’s overall trade position. Definitions and data periods matter in comparisons. Read the explainer

Training (AI)

AI training is the process of adjusting a model’s internal parameters using data and a learning procedure so that it performs a defined task or predicts patterns. In language-model training, the system may learn to predict text tokens; other models learn from images, audio, structured data, or combinations. Training involves choices about data, objectives, computing resources, and evaluation. Later steps such as fine-tuning or human feedback may change how a model responds. Training is distinct from inference, when a trained model is used to produce outputs. The term alone does not establish what data were used, whether they were licensed, or how well the model performs. Read the explainer