Category: Finance and Markets

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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Finance and Markets, Long Read

Quantification of Risk in Finance

Quantification of Risk in Finance  While risk may initially seem like an abstract concept, the ability to quantify and  compare the risk which comes with acquisitions and investments is one of the concepts which falls at the heart of modern finance. This allows financial institutions to make decisions regarding investments by providing a metric to compare an investment’s return with the risk it is associated … Continue reading Quantification of Risk in Finance

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Finance and Markets, Politics

Central Bank Independence

When the Bank of England was finally granted independence by the new Labour government in 1997, the Economist ran the headline, ‘Free at last’. This move belatedly joined a rapidly growing trend worldwide of governments granting central banks independence. By the end of the 20th century, central bank independence (CBI) had risen to around 80-90% (Chart 1), while the independence of these banks had also increased … Continue reading Central Bank Independence

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Europe, Finance and Markets, UK

Trade with the EU: Booming Growth or a Fallacy?

Rachel Reeves has had a busy start to her Chancellorship. Within the first 10 months, she has had a 40 billion Pound budget and watched in horror at the unprecedented upheaval of the last century of global trade. Trump’s uncertainty has ushered in a renewed vigour to look elsewhere for loyal partners and new, reliable investors. Or are they new? The Labour government was elected … Continue reading Trade with the EU: Booming Growth or a Fallacy?

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Finance and Markets, International

Gold Standard vs Fiat Money

Ever since the creation of money, when society disengaged from barter (trading goods with one another) and introduced a medium of exchange (money), humanity has most commonly tied the value of money to a commodity. For most of the first millennia, money was tied to silver or bimetallic standards. However these systems posed a significant number of problems, especially in times of economic crisis. As … Continue reading Gold Standard vs Fiat Money

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Finance and Markets

The Economics of Prime Hydration

Prime Hydration is a range of sports and energy drinks, created by famous influencers KSI and Logan Paul. Since its creation, Prime has experienced a rapid rise to fame through intense celebrity marketing, mass sales, and a complete takeover of the beverage industry. For example, Prime Hydration surpassed Gatorade to become the most-sold hydration beverage at Walmart in 2023, selling 1 billion bottles as of … Continue reading The Economics of Prime Hydration

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Finance and Markets, Geography, International

The Bretton Woods System

The Bretton Woods System: a Blueprint for a Globalised Economy The Bretton Woods System was a set of international economic and financial agreements established in July 1944 during a conference in Bretton Woods, New Hampshire, USA, towards the end of WW2. The agreements intended to establish a renewed framework for the global economy, stabilise the international monetary system, and prevent economic conflicts such as protectionism … Continue reading The Bretton Woods System

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Development, Economics, Finance and Markets, Long Read

Emerging Markets: Is the Risk Worth the Reward?

When considering a country’s economy there are two types: emerging and developing. An emerging economy is characterised by transition in the economy of a nation from a pre-industrial, underdeveloped economic environment into an industrially competitive one which exhibits some, but not all, of the characteristics of a well-developed economy. The term ‘emerging market’ was first used by Antonie Van Agtmael of the International Finance corporation … Continue reading Emerging Markets: Is the Risk Worth the Reward?

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Development, Economics, Finance and Markets

The Paradox of Progress

The Paradox of Progress – Why Technological Advances Aren’t Boosting Wages  Introduction  Technological advances have always been the main driver of economic growth and prosperity; major historical events such as the Industrial Revolution (1760-1830), and –more recently – the rise of the internet have brought around higher productivity, and with that, higher wages. However, although events past the 1980’s (such as the rise of artificial … Continue reading The Paradox of Progress

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Finance and Markets, International

The Google Antitrust Cases

The contrasting antitrust challenges faced by Google in the EU and the US highlight the different regulatory approaches to addressing Google’s monopoly in the markets of online search and digital advertising, specifically in areas like search engine services, search text ads, and ad exchanges. In Europe, the company has encountered fines totalling billions, often linked to long-standing concerns over market abuse. However, the EU’s recent … Continue reading The Google Antitrust Cases

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