Before COVID, the Great Financial Crisis (GFC) of 2008 was the most severe economic downturn since the Great Depression of the 1930s. Also known as the Global Financial Crisis, the GFC caused a nationwide recession, as well as causing global trade to decrease by 15% between 2008-2009. Nearly every country in the world was affected by the decline of economic growth, the loss of jobs, … Continue reading The Great Financial Crisis
The Euro is the official currency of the Eurozone, a currency union consisting of 20 out of the 27 European Union member countries, with Croatia being the most recent to adopt it on the 1st of January 2023. Initially, the Euro was launched as a virtual currency on the 1st of January 1999, only used for things such as accounting and electronic payments. Initially, eleven … Continue reading The Euro – a flawed currency?
WARNING: THE FOLLOWING ARTICLE CONTAINS SPOILERS A few weeks ago, I watched a great film called Puss in Boots. In the movie, Puss teams up with the infamous feline burglar Kitty Softpaws and his childhood frenemy Humpty Dumpty to steal the golden goose and save their hometown, San Ricardo, to make their foster mother proud. They eventually succeed, and the villagers of San Ricardo get … Continue reading Economic implications of having a real-life golden goose
A cryptocurrency is a digital currency secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology and they are generally not issued by a central authority. Any investor can purchase cryptocurrency through an exchange. These range from popular options likes Coinbase, apps such as Cash App, or through brokers, as well as through financial derivatives … Continue reading Crypto-currency and the Pinocchio Condition
Throughout centuries man has been searching for repetitive (or seemingly repetitive) patterns in evolution and social change, both of which underpin the economic world. One such pattern is based on the Golden Ratio (Phi). This ratio is a consequence of a particular sequence identified by Fibonacci in the 13th century, and its fascination is based on the fact that it appears throughout science and nature so often … Continue reading Golden Opportunities
In 1983, Mohammed Yunus founded the Grameen Bank. His idea was simple: the bank would grant tiny loans, often no more than $100, to women in rural Bangladesh who had no access to credit. In the following decades, repayment rates for some schemes were as high as 98%, and Yunus attracted major funds from backers such as the Ford Foundation. In 2020, more than $50 billion of credit was being given to the poor – this time, by giant global banks, … Continue reading Microfinance: What went wrong?
Money is one of the oldest inventions of mankind, predating all written history. Although the money that we see today takes the form of cash in your wallet and the number in your bank account, this has not always been the case. Money is a medium through which goods and services can be exchanged. Because of this, money doesn’t have to be in the form … Continue reading What is Money and Why are Fiat Currencies the Best?
The U.S. national debt has amounted to $29 trillion by running annual deficits, with the last surplus being 20 years ago in 2001. Reacting to the Covid-19 pandemic that has gripped the globe, the U.S. government has accelerated the buildup of debt in an effort to keep households and firms afloat. Shortly after the pandemic outbreak (November 2019), the Trump administration issued an emergency stimulus … Continue reading The US National Debt Crisis
In the run-up to last year’s festive period, many stock investors were eagerly anticipating their annual gift from Father Christmas – the Santa Claus rally. This refers to a seasonal upwards trend in the US stock market during the last five trading days in December and the first two in January. According to the Stock Trader’s Almanac, the S&P 500 historically tends to rise by an … Continue reading The Fed vs. Santa
It is only recently that the concept of human nature has been applied to economics, yet its impact can be seen everywhere. Contradicting traditional economic theory, it is believed now that human nature is intrinsic in every action we take from the small scale to the large. The recent GameStop trend was fuelled by individual investors taking an opportunity to turn a profit and retaliate … Continue reading The Psychology of Investing
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