The Euro’s Fundamental Problems
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
Has Economics Run Out Of New Big Ideas?
Economics is often criticised for being a reactionary science that predicts nothing and only explains its mistakes (Rodrik, 2015). It is rarely credited with discoveries that help society; and in a random survey, most participants did not trust economists (Economics Network, 2017). Instead, economists are criticised for their resistance to change and for limiting the exploration of real-world practical policy solutions. Moreover, it is true … Continue reading Has Economics Run Out Of New Big Ideas?
Anarcho-Capitalism: Utopia or Pipe Dream?
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?
Crossing Borders and Crossing lines: The International Impact of the Mexican Drug Trade
It is January 19th 2017 and Joaquín “El Chapo” Guzmán has just been extradited to the United States to face charges related to his running of the most powerful drug cartel in Mexico, the Sinaloa Cartel. The United States’ Drug Enforcement Administration, also known as the DEA, claims that this is a monumental victory that will be the beginning of the end for drug smuggling into America. However, … Continue reading Crossing Borders and Crossing lines: The International Impact of the Mexican Drug Trade
The Energy Question
The ongoing Energy Crisis has created unprecedented political, economic, and social distress in the UK. Some potential solutions exist to address the immediate issue of significant energy price rises. However, I believe that we must equally focus on implementing effective longer-term solutions to reduce the risk of a future, even more disruptive, energy crises. To do this, the UK needs to shift to a more … Continue reading The Energy Question
The Asian Financial Crisis
The 1997 Asian financial crisis was one of the most devastating economic periods since records began, gripping Southeast Asia for most of the late 1990s. Originating in Thailand in July 1997, this crisis rapidly spread to many other countries with a ripple effect, demonstrating the impact of financial contagion. Nicknamed the Tom Yam Kung crisis (a hot and sour shrimp soup which is seen as representative … Continue reading The Asian Financial Crisis
Chart of the Month – August 2023
August’s Chart of the Month shows the number of Santander cycles hired from 2015, when Santander began sponsoring the scheme in London, to 2023. It shows long term growth, culminating in 2022’s record-breaking year of 11,506,889 hires. However, more recently, usage has been low and recovery has been slow. The Santander Cycle hire scheme is owned by the Transport For London (TFL), a government body … Continue reading Chart of the Month – August 2023
Chart of the Month – July 2023
July’s chart of the month shows how Japanese stocks have performed since COVID. In 2023 alone, the Nikkei 225 has grown by 30%, triple that of the S&P 500, and far exceeding the growth of most European indexes. The Nikkei is now only 20% off its peak in 1990, growing 6% in June. Investors must ask: have Japanese stocks at last recovered from a 30-year … Continue reading Chart of the Month – July 2023
Chart of the Month – June 2023
June’s Chart of the Month highlights the stagnation in China’s manufacturing output after the pandemic. When China unexpectedly reopened at the beginning of 2023, many analysts expected an immense recovery. However, their forecasts have been disproven, particularly regarding China’s manufacturing activity, which has fallen after a slight increase (an index score below 50 indicates a contraction). This is not because of a stunted reopening, but a … Continue reading Chart of the Month – June 2023
Monopolies
On the 8th of January 1982, the telecommunications company AT&T was finally mandated to split into 7 independent companies. At that time, it was the only provider of telephone service throughout almost all of the United States. Moreover, most telephone equipment was provided by Western Electric, its subsidiary, which resulted in a vertical integration system, where a company owns its supply chain. Unsurprisingly, the United … Continue reading Monopolies
