The US Bond Market Puzzle: Higher Yields Amid Cuts

The economic theory suggests that when central banks cut interest rates, bond yields decline. Interest rates are the annual return investors receive from a bond. If the central banks issue new bonds at a lower rates, existing bonds – which yield a relatively higher return – will be received with higher market demand, thereby driving up bond prices. Consequently, their yield, defined as the quotient … Continue reading The US Bond Market Puzzle: Higher Yields Amid Cuts

Christiania: Economic Lessons from Copenhagen’s Self-Governing Society

Freetown Christiania is an experimental self-governing community in Copenhagen, amidst the “hippie” counter-culture movement of defiance that characterised the time. Born in 1971 from the occupation of an abandoned military base, Christiania defies conventional economic norms, operating without private property and with a unique model of communal ownership and resource sharing. Over the past 50 years, it has evolved into a sustainable micro-economy that draws … Continue reading Christiania: Economic Lessons from Copenhagen’s Self-Governing Society

Britannia on the Brink: Is the UK Turning into Greece Lightning?

In the aftermath of the 2008 global financial crisis, Greece was faced with crippling debt. Resulting in the implementation of austerity measures (policies which reduce government spending and shrink the budget deficit), slumping GDP and overall political instability. Despite the UK being one of the largest economies in the world its national debt (£2,686 billion) has been ever rising, especially after the pandemic and specific … Continue reading Britannia on the Brink: Is the UK Turning into Greece Lightning?

UK Productivity

What strategies would be most effective for improving UK productivity?  Introduction Enhancing productivity, defined as the ratio of output to input volume [1], is critical to unlocking higher UK economic growth. Productivity improvements account for half of the differences in GDP per capita across countries (Chart 1). Growth in labour, capital, and Total Factor [2] productivity would translate into higher standards of living and prosperity growth. As Krugman … Continue reading UK Productivity

The Secret to Australia’s Success

Among the economies of Southeast Asia, Australia stands out on its own. Viewed by many as the stronghold of the West in the East, its GDP per capita of $69,000 competes with the richest EU countries and even stands above the UK’s. Some attribute modern Australia’s success to its colonial origins or to its influx of skilled immigrants over the last hundred years. However, the … Continue reading The Secret to Australia’s Success

Cracks in the Crown: The decline of the UK Economy 

During the 19th century, the UK stood as the preeminent global superpower. From the British Raj in India to the Dominion of Canada, its riches and power were unmatched. Since the height of the empire in 1922, when the UK governed 23% of the world population (458 million people with a domestic population of only 42 million) (Source: Statista), the UK has seen a gradual decline … Continue reading Cracks in the Crown: The decline of the UK Economy 

Tax Evasion and its Motives

Taxation is the backbone of many countries, funding vital infrastructures such as national defense and social security. Yet, a surprising number of people resent the sums of money that are taken from their salary and resort to tax evasion (deliberately underreporting their earnings) through a variety of methods. An investigation from Bloomberg shows that the richest 1% of Americans, a country widely known for its economic and political … Continue reading Tax Evasion and its Motives

Benefits of R&D

Enhanced productivity arises from the efficient combination of inputs and is driven by new ideas, technological breakthroughs, and improved business models. This transformation fuels economic growth and elevates living standards and well-being. Research and Development helps to generate results in the advancements and improvements in technology, as well as deepening capital. How can Research and Development be used to drive economic growth? Research and Development … Continue reading Benefits of R&D

The Impact of Indian Immigrants on Kenya’s Economy

On August 15, 1947, British colonial rule in India ended. The borders marked by Sir Cyril Radcliffe tore apart British India, displacing over 14 million citizens, hundreds of thousands of whom sought refuge in East Africa, especially Kenya. Kenya later gained independence from Britain in 1963, and since then its economy has seen periods of rapid growth, challenges, and recovery. But to what extent is … Continue reading The Impact of Indian Immigrants on Kenya’s Economy

Bond Market Turmoil: Behind the UK’s Latest Gilt Sell-Off

The UK bond market is hitting the decks. Rising yields on gilts (UK Government bonds) are resulting in surging borrowing costs for the government; these developments are generating concerns about the country’s fiscal stability and reducing investor confidence. With the pound weakening against the US dollar and questions mounting over fiscal policy, the impact of the bond sell-off has widespread impact both on UK finances … Continue reading Bond Market Turmoil: Behind the UK’s Latest Gilt Sell-Off