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“Promise and Paradox: Understanding Brazil’s Economic Highs and Lows” In 2011, Brazil was the world’s sixth-largest economy, surpassing the United Kingdom. Barely five years later, the country plunged into its worst recession in over a century, losing more than 7% of its GDP between 2015 and 2016. This stark contrast perfectly encapsulates the nature of Brazil’s economy: one with the potential to thrive through its … Continue reading The Economy of Brazil
The Paradox of Thrift: When Saving Hurts the Economy Traditionally, saving money is seen as a positive action. Keeping money in reserve for emergencies and potential issues in the future is surely a good thing both for you and for those around you. However, this seemingly responsible and innocent action can have extraordinarily negative consequences for a nation’s economy and growth if savings reach excessively … Continue reading The Paradox of Thrift
The first bite is often much more enjoyable than the fifth bite. We love and experience the way we eat. Everyone knows that the first bite of a snack is like a sweet dream or heaven, the next bite technically still has similar if not the same taste and satisfaction but the fourth or fifth bite is not giving you the same pleasure or satisfaction, … Continue reading The Psychology of Marginal Utility
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
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
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
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
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
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
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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