Nudges – A Dive into Behavioural Economics
Introduction: In classical economics, individuals are assumed to be rational decision-makers. Rationality in this case means making choices that result in an optimal level of benefit or utility to the individual making the choice. This view, which is known as ‘homo economicus’, or the economic man, is the portrayal of humans as agents who are consistently rational and narrowly self-interested, and who pursue their ‘subjectively … Continue reading Nudges – A Dive into Behavioural Economics
Germany’s Far-Right
Alternative für Deutschland (AfD) is a far-right party driven by euro-scepticism and anti-immigration; the party is now radically shifting Germany’s political state. AfD has recently grown in popularity, catalysed by a combination of public dissatisfaction with the current political system, and endorsements from high-profile figures such as Elon Musk, who called out the party as Germany’s “last spark of hope”. As the country faces economic stagnation … Continue reading Germany’s Far-Right
LIV Golf
The world of professional golf has witnessed a seismic shift in recent years, marked by the emergence of LIV Golf—a breakaway professional golf league funded by Saudi Arabia’s Public Investment Fund (PIF). Initially called the ‘Premier Golf League’ in 2021, the name was later changed to LIV, 54 in Roman Numerals, signifying the number of holes played at each tournament: a shorter, seemingly easier to … Continue reading LIV Golf
Catastrophe Bonds
An Introduction to Catastrophe Bonds and the L3C Catastrophe bonds (or cat bonds) are high-yield debt instruments used to raise money for companies in the insurance industry in the event of a natural disaster. A bond is a financial instrument in which the issuer (a government or company) sells bonds to investors, which gives the issuer capital, raising money. They pay the investor with regular … Continue reading Catastrophe Bonds
What is Trump’s Obsession with Greenland?
‘We need Greenland for national security purposes,’ declared President Donald Trump in a press conference on January 7th, a move shrouded in controversy that angered the EU, Denmark, and other rivals such as China and Russia. A closer look shows that his goal is much bigger than just spending almost $70 billion to buy a huge, mostly empty hunk of ice. Firstly, this was … Continue reading What is Trump’s Obsession with Greenland?
Chart of the Month: January 2025
Nvidia’s share price (NVDA) during a five-day period up to January 28th Source: Google Finance, 2025 On Monday 27th of January, Nvidia (NVDA) suffered a 17% fall in its shares, constituting a $592.7 billion drop in market capitalisation – the total value of company shares held by investors – from $3.5 trillion to $2.9 trillion and corresponding to a fall in share price from $142.62 to … Continue reading Chart of the Month: January 2025
Corporate Colonialism
At its peak, the English East India Company (EIC) was not only the first multinational company of its day, but was also the largest corporation of its kind: the EIC surpassed the scale and power of many nations, effectively becoming the governing authority of India, one of the most economically productive regions of the era. Furthermore, even though the East India Company’s monopoly on trade waned in … Continue reading Corporate Colonialism
The US Bond Market Puzzle: Higher Yields Amid Cuts
The economic theory suggests that when central banks cut interest rates, bond yields decline. Interest rates are the annual return investors receive from a bond. If the central banks issue new bonds at a lower rates, existing bonds – which yield a relatively higher return – will be received with higher market demand, thereby driving up bond prices. Consequently, their yield, defined as the quotient … Continue reading The US Bond Market Puzzle: Higher Yields Amid Cuts
From Blockbuster to Bust: Lessons for Companies Facing Innovation
We’ve all heard of the video rental giant – Blockbuster. Its Founder David Cook opened nearly 10,000 global stores and generated billions in annual revenue. Yet in the early 2010s, the name disappeared from high streets, with its last corporate-owned store shutting in 2014. How did a company that dominated its industry fail so spectacularly, and more importantly, how can companies today learn from its … Continue reading From Blockbuster to Bust: Lessons for Companies Facing Innovation
Christiania: Economic Lessons from Copenhagen’s Self-Governing Society
Freetown Christiania is an experimental self-governing community in Copenhagen, amidst the “hippie” counter-culture movement of defiance that characterised the time. Born in 1971 from the occupation of an abandoned military base, Christiania defies conventional economic norms, operating without private property and with a unique model of communal ownership and resource sharing. Over the past 50 years, it has evolved into a sustainable micro-economy that draws … Continue reading Christiania: Economic Lessons from Copenhagen’s Self-Governing Society
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