Author: Etonomics

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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Development, Economics

The Solow-Swan Growth Model

What is The Solow Growth Model?  Also known as the Solow-Swan model, the Solow growth model is a foundational economic framework often used to explain and recognise trends in long-run economic growth. It does this by looking at factors like capital accumulation, labour growth and productivity increases (often driven by technological progress).  Structure, Mathematics and Assumptions  N.B. this model assumes constant returns to scale, exogenous … Continue reading The Solow-Swan Growth Model

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Behavioural, Economics

The Economics of Ozempic

The economics of Ozempic  We’ve all heard of Ozempic at one point or another. Our favorite celebrities (including Oprah Winfrey and Elon Musk) use Ozempic/similar drugs daily. Ozempic, or Semaglutide, was originally a prescription drug for type 2 diabetes; however, it is now one of the most well-known weight-loss drugs, as it is known to actively reduce appetite and reduce body weight by 15%. Its … Continue reading The Economics of Ozempic

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Business and Technology, Development, Economics

AI and the Labour Force

When the steam engine transformed industry in the 19th century, economists redefined how they measured growth and economic productivity. Today, two centuries later, artificial intelligence poses a similar challenge, except now the developments and changes come from AI algorithms and not machinery or infrastructure. The world of AI automation is growing rapidly and is enabling people to fully automate tasks that were once performed by humans. … Continue reading AI and the Labour Force

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Economics

Deadweight Loss

Deadweight Loss  What is Deadweight Loss?  Deadweight Loss (DWL) is defined as the economic inefficiency that may occur in a market due to a new policy/event in said market. This change creates a distortion in the natural supply and demand equilibrium (equilibrium is defined as the supply and demand for a product being perfectly equal) set by the free market; the DWL refers to the … Continue reading Deadweight Loss

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Economics, Politics

Taxing the Ultra Rich

We’ve all heard of taxing the ultra-rich as the key to solving fiscal deficits around the world. Whether it be Bill Gates claiming that he should pay “significantly higher” taxes, or Warren Buffet advising that the government should “get serious about shared sacrifice”, taxing the ultra-rich at significantly higher rates has been debated throughout the last decade. But is it really the panacea for deficits … Continue reading Taxing the Ultra Rich

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Development, Economics, Europe, Politics

Capitalism and Social Welfare in Nordic Countries

As many advanced economies are struggling to balance changing demographic demand, inequality and free market capitalism, the Nordic countries – Denmark, Finland, Iceland, Norway and Sweden – are often held out as examples of successfully balancing capitalism and the social welfare needs of their societies. This is often attributed to “The Nordic Model” – a system which combines free market capitalism with strong social welfare, … Continue reading Capitalism and Social Welfare in Nordic Countries

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