Author: Etonomics

Behavioural, Economics, Finance and Markets

Perfect and Monopolistic Competition

Perfect Competition vs. Monopoly: Who Really Sets the Price?   In the real world, the pricing of goods and services can fluctuate wildly due to a plethora of economic and social factors. However, over time, economists have developed various models to simulate real-world pricing but in differing conditions; while there are, of course, multiple models, the two models that occupy opposing ends of the spectrum are … Continue reading Perfect and Monopolistic Competition

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Development, Economics

The Basic Two Sector Model

Economics is the study of complex interactions between different agents of society—individuals, businesses, governments, and the global economy. Economic models make these interactions easier to understand. The most fundamental example is the two-sector model of the circular flow of income, which focuses on how economic activity is conducted through these interactions.   The two-sector model provides the foundation for understanding how income is generated, distributed, and spent. … Continue reading The Basic Two Sector Model

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Asia

Japan and its Rice Crises

When you think of the Japanese economy, what immediately comes to your mind? The supposed “lost decade”, its deflationary policies or zero interest rates that reduce the effectiveness of its fiscal policies? Or perhaps, you think more positively, zooming in on the advanced technology industry or its high investments in human capital. But what you probably didn’t think about, unless you read the title, were … Continue reading Japan and its Rice Crises

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Economics, Environment

EV Subsidies

This essay considers whether current electric vehicle (EV) subsidy policies are effective in reducing carbon emissions, focusing especially on how consumer behaviour and usage patterns impact net carbon emissions.   There are four different premises and possible situations for buyers who are considering the adoption of EVs. Firstly, households that currently own no vehicle and will purchase an EV. Alternatively a buyer that owns an ICEV (Internal … Continue reading EV Subsidies

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Asia, China, Development, Economics

Hong Kong’s Economic Turning Point

Hong Kong’s Turning Point: Turbulence to Transformation? Since the return of Hong Kong to China in 1997, the Hong Kong government has depended on limiting the release of land parcels to drive up prices and maximize revenue, allowing it to maintain low taxes, which in turn attracts businesses, talent, and foreign investment. Branded as “Asia’s World City”, Hong Kong rose rapidly to become the widely … Continue reading Hong Kong’s Economic Turning Point

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Development, Economics, Long Read, Politics

The Taylor Rule

Monetary policy makers often face a trade-off between rules based and discretionary policy formulation. While discretionary policy formulation allows flexibility in responding to unexpected shocks, it can simultaneously create uncertainty and reduce credibility. On the other hand, a systematic, rules based approach anchors expectations regarding future monetary policy, helping to stabilize the economy over time. In 1993, the economist John B. Taylor proposed the Taylor … Continue reading The Taylor Rule

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Development, Economics

The Role of Innovation in the Job Market

Technology and innovation are increasingly becoming more efficient, exponentially increasing the power of information technology, having a knock on effect on the economy. Essential jobs are comprised of tasks in which automation can become a substitute, lowering the amount of jobs required for the same final effect. However, it is essential that we understand the interactions between these technologies and employment. Significantly, this technology can … Continue reading The Role of Innovation in the Job Market

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Development, Economics, International, Politics

The IMF and World Bank in a Multipolar World

The IMF and World Bank in a Multipolar World A multipolar world economy is defined as a world order where major economic power does not lie in the hands of one single state but is instead divided between various centres of economic influence across the globe. Over the last few decades, global order and economic influence have shifted from a Western-centric polar model to a … Continue reading The IMF and World Bank in a Multipolar World

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Economics

The Dangers of a Cashless Economy

The Dangers of a Cashless Economy  Historically, currency has always been physical; whether that be in the form of £20 notes, gold coins or farm animals, the exchange of value has almost always occurred through the exchange of tangible objects. However, as the world progresses, currency evolves with it and the 2000s have seen the rise of contactless payments, cryptocurrencies and digital money as the … Continue reading The Dangers of a Cashless Economy

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