The Group of 7 (G7), containing the countries of Italy, Canada, France, Germany, Japan, the United States, and the United Kingdom is a political and economic forum made up of some of the world’s most historically significant major economies. However, it is worth noting that the G7 excludes two of the world’s economic giants, China and India, which are both among the top five economies … Continue reading G7: Going, Going, Gone?
Introduction The “Lost Decades” of Japan has been cited by economists and policymakers as an allegory to warn against heedless reduction in interest rates in the face of a worsening economic climate. During this period of economic stagflation triggered by its 1990 stock market crash and thus suffering from immense debt, the country was in desperate need to recover the economy from rapid deflation. As … Continue reading Disinflation and interest rates: Battling with the Zero Lower Bound
The anticipated robotaxi platform from Tesla represents far more than an advancement in autonomous vehicle technology—it stands as a direct competitive threat to established rideshare leaders Uber and Lyft. Through its advancing Full Self-Driving (FSD) capabilities, which Tesla claims will soon reach widespread implementation, the company continues its mission to transform transportation through automation. The emergence of fully autonomous services poses sweeping implications for traditional … Continue reading Robocab Revolution
In times of economic uncertainty, why do wages and prices often remain ‘rigid,’ even as demand drastically falls or spikes? This phenomenon, known as ‘stickiness,’ is a central concept in Keynesian economics. The father of this section of economics, John Maynard Keynes, argued that without government intervention, mainly fiscal or monetary policies, the rigidity of prices can ’trap’ economies in high unemployment and slow growth … Continue reading Sticky Wages and Prices
In the 1950s, St Lucian economist Sir William Arthur Lewis theorised the ‘Dual Sector Model’ or the ‘Lewis Model’. The model examines structural change within developing economies which results in rapid periods of economic growth. The Lewis model centres upon a dualistic economy, which is split into the agricultural “subsistence” sector and the industrial “modern” sector. This divide can be simplified to those working in … Continue reading The Lewis Model of Development
Populism – the ideology which divides most of an electorate against some ‘other’ elite – is primarily caused by economic marginalisation (the denial of an equal opportunity to participate in a domestic economy). To justify this, I will explain how pertinentmacroeconomic trends throughout the turn of the millennium have exacerbated this issue. Additionally, I will examine a panoply of additional theses for the rise of populism, and demonstrate why, although valid, they are not as pivotal as economic marginalisation in this regard. The best evidence … Continue reading The Trumps Strike Back, but why?
Following Vladimir Putin’s invasion of Ukraine, how has the Ukraine War conflict impacted global economic recovery? Joko Widodo, the Indonesian president, opened the G20 meeting by warning of the risks of the crisis to Ukraine on the global economy, “This is not the time for rivalries and creating new tensions that disrupt the… recovery, let alone endanger the safety of the world, as is happening in Ukraine,”. … Continue reading How has the Ukrainian Conflict Impacted Global Economic Recovery?
To conduct international trade and financial transactions, a reserve currency is necessary to eliminate the costs of settling transactions, involving different currencies. Prior to reserve currencies, the gold standard was used to align all currencies, but Gold did not grow at a pace with the real economy and caused crashes as a result. The financial economy has to grow faster than the real economy, otherwise … Continue reading The Euro’s Fundamental Problems
In the modern world, we take it for granted that the government should play an essential role in economic and social affairs. The idea that society could ever function smoothly without the apparatus of the state seems preposterous. Indeed, there is good reason to believe this, as mainstream economists today would identify three broad areas of responsibility that the state holds in managing the economy. … Continue reading Anarcho-Capitalism: Utopia or Pipe Dream?
On the 31st of December 2019, the first report of Covid-19 was submitted by China to the World Health Organisation (WHO). Since then, the effects of the repeated loosening and tightening of preventative measures in the UK, including three national lockdowns, has seen unprecedented change in the UK’s economic performance. This comes on top of the disruptive influence of Brexit. There are twenty-one major economic … Continue reading Slide or Bounce? – The Post-Pandemic Prospects for the UK
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