The Taylor Rule
Monetary policy makers often face a trade-off between rules based and discretionary policy formulation. While discretionary policy formulation allows flexibility in responding to unexpected shocks, it can simultaneously create uncertainty and reduce credibility. On the other hand, a systematic, rules based approach anchors expectations regarding future monetary policy, helping to stabilize the economy over time. In 1993, the economist John B. Taylor proposed the Taylor … Continue reading The Taylor Rule
News Briefing 14/11/25
UK Economics: Unemployment in the UK has risen to 5%, as stated in statistics published on the 11th November, the highest levels seen since the Covid era. This, paired with wage growth rates also decreasing, is expected to lead to and boost an ongoing rally in gilt investments and ratings as expectations of lowered interest rates in the UK come begin to gain credibility. Recent updates … Continue reading News Briefing 14/11/25
AI and the Labour Force
When the steam engine transformed industry in the 19th century, economists redefined how they measured growth and economic productivity. Today, two centuries later, artificial intelligence poses a similar challenge, except now the developments and changes come from AI algorithms and not machinery or infrastructure. The world of AI automation is growing rapidly and is enabling people to fully automate tasks that were once performed by humans. … Continue reading AI and the Labour Force
The Economics of Ozempic
The economics of Ozempic We’ve all heard of Ozempic at one point or another. Our favorite celebrities (including Oprah Winfrey and Elon Musk) use Ozempic/similar drugs daily. Ozempic, or Semaglutide, was originally a prescription drug for type 2 diabetes; however, it is now one of the most well-known weight-loss drugs, as it is known to actively reduce appetite and reduce body weight by 15%. Its … Continue reading The Economics of Ozempic
The Solow-Swan Growth Model
What is The Solow Growth Model? Also known as the Solow-Swan model, the Solow growth model is a foundational economic framework often used to explain and recognise trends in long-run economic growth. It does this by looking at factors like capital accumulation, labour growth and productivity increases (often driven by technological progress). Structure, Mathematics and Assumptions N.B. this model assumes constant returns to scale, exogenous … Continue reading The Solow-Swan Growth Model
The Dangers of a Cashless Economy
The Dangers of a Cashless Economy Historically, currency has always been physical; whether that be in the form of £20 notes, gold coins or farm animals, the exchange of value has almost always occurred through the exchange of tangible objects. However, as the world progresses, currency evolves with it and the 2000s have seen the rise of contactless payments, cryptocurrencies and digital money as the … Continue reading The Dangers of a Cashless Economy
News Briefing 30/09/25
UK Economics On Monday 23 September, the S&P Global flash UK Composite PMI fell to 51.0 for September (from 53.0 in August), with services slowing and manufacturing still in contraction, signalling weaker momentum into Q4. The softer survey points to slower GDP growth and eases the case for gradual BoE cuts. On Friday 26 September, 30-year gilt yields touched about 5.57%, near multi-decade highs, underscoring … Continue reading News Briefing 30/09/25
Capitalism and Social Welfare in Nordic Countries
As many advanced economies are struggling to balance changing demographic demand, inequality and free market capitalism, the Nordic countries – Denmark, Finland, Iceland, Norway and Sweden – are often held out as examples of successfully balancing capitalism and the social welfare needs of their societies. This is often attributed to “The Nordic Model” – a system which combines free market capitalism with strong social welfare, … Continue reading Capitalism and Social Welfare in Nordic Countries
Taxing the Ultra Rich
We’ve all heard of taxing the ultra-rich as the key to solving fiscal deficits around the world. Whether it be Bill Gates claiming that he should pay “significantly higher” taxes, or Warren Buffet advising that the government should “get serious about shared sacrifice”, taxing the ultra-rich at significantly higher rates has been debated throughout the last decade. But is it really the panacea for deficits … Continue reading Taxing the Ultra Rich
The Economics of MLB
Introduction: Throughout the late 20th century and the early 21st century, we have experienced the rapid commercialization of sports. A striking example was the recent IPL auction, where Rishabh Pant was sold to the Lucknow Super Giants for 27 crore ($3,122,490.09). Baseball has seen a similar financial boom, which can be attributed to its rapid increase in net worth. The Major League Baseball (MLB), founded in … Continue reading The Economics of MLB
