Psychological Trading
The human mind is not built for financial business. Our archicortex (the oldest region of the brain’s cerebral cortex) can’t distinguish between life-threatening and non life-threatening situations. This has effects throughout the financial sector, especially trading. Unfortunately, the perfect rationality of the “homo economicus” is a lie: humans have always been known to be affected by emotions and biases. Richard Thaler, a Nobel laureate in … Continue reading Psychological Trading
European Super League: A money making scheme?
Over the past century, football has cemented its place as the most popular sport in the world. It now commands the interest, loyalty and engagement of more people than ever before and continues to grow bigger. ‘In the three most populous nations on earth – China, India and the United States – where football existed on the periphery of society, it has now arrived for … Continue reading European Super League: A money making scheme?
The Economic Implications of Global Free Movement
The border has become the focal point of the 21st Century debate on globalisation. To some, it is an arbitrary boundary hampering efficiency; to others, the mainstay of security and prosperity. What happens when these barriers fall? The economy lies at the heart of the migration conundrum and it is largely economic factors that motivate movement. Higher wages, better working conditions, greater availability of jobs, … Continue reading The Economic Implications of Global Free Movement
UBI: A leap into the dark?
Universal Basic Income (UBI) is a government initiative consisting of an unconditional periodic payment to every adult citizen. UBI has been described as one of the most ambitious social projects in history that could reap countless benefits if implemented correctly. On a microeconomic scale it would lift every citizen above the poverty line, whilst on a macro scale it would act as a catalyst to … Continue reading UBI: A leap into the dark?
Inflation Targeting: A flawed idea?
Since New Zealand’s adoption of an inflation targeting system to guide monetary policy in 1990, 25 other countries have followed suit. However, in the wake of the 2008 financial crisis, big-hitting economists such as Gregory Mankiw, Paul Krugman and Scott Sumner have proposed alternative methods, such as nominal GDP targeting and price-level targeting. The question the debate raises is two-fold: has inflation targeting brought prosperity, … Continue reading Inflation Targeting: A flawed idea?
Covid-19 and the Economy
Recently, Covid-19 has been at the forefront of global news. Having originated in the latter months of 2019 in China, it has now been declared a global pandemic. The virus is carried best by young people but is most lethal for the elderly. The United Kingdom has now moved to the ‘delay’ phase with the objective now being to slowdown the virus. With total cases … Continue reading Covid-19 and the Economy
The Bitcoin Bubble
In 2008 the first cryptocurrency Bitcoin was launched. While still providing a means for exchanges and the store of value, cryptocurrencies have the distinct advantage of being decentralised as opposed to the more typical fiat currencies (e.g. the US Dollar) which rely on banks and governments to declare it legal tender and maintain its value. However, Bitcoin has the advantage of cutting out the ‘middle-man’ … Continue reading The Bitcoin Bubble
Indian Telecom Revolution
Mobile data has become ubiquitous with cellular packages, and its usage is likely to increase further. Access to mobile data is essential for consumers due to the unreliability and privacy concerns of public Wi-Fi networks and long commuter hours spent around the globe. However, even with increasing demand, data prices in India (which houses the world’s second highest number of mobile users) have been drastically … Continue reading Indian Telecom Revolution
What’s the big deal about Huawei?
Forgot Johnson and Johnson’s, or Wells Fargo, Huawei has been the most notorious and controversial company of at least the last few years. Boris Johnson’s decision on 28 January to allow Huawei, a Chinese telecoms giant, to build 35% of Britain’s 5G infrastructure caused uproar, both domestically and internationally. Senior Tories, including Ian Duncan Smith and David Davis, wrote a letter criticising the decision, while … Continue reading What’s the big deal about Huawei?
China in Africa
At the turn of the century, China started to boost its outward direct investment (ODI). This change in policy constituted one of the most dramatic shifts in economic history; China shot up in the global ODI rankings, moving from 23rd to 2nd in a matter of 15 years. In particular, China has boosted its investment into Africa and in 2009, it overtook the US as … Continue reading China in Africa
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