When the Bank of England was finally granted independence by the new Labour government in 1997, the Economist ran the headline, ‘Free at last’. This move belatedly joined a rapidly growing trend worldwide of governments granting central banks independence. By the end of the 20th century, central bank independence (CBI) had risen to around 80-90% (Chart 1), while the independence of these banks had also increased … Continue reading Central Bank Independence
Since the founding of Brazil and its secession from Portugal in 1822 and especially after establishement of the republic in 1889, various groups have operated paramilitary organisations in Rio De Janeiro, known today as militias. To some, these groups are vigilante heroes, ordinary men who choose to stand against the terror of Brazil’s drug gangs and provide the security that Rio’s municipal government fails to … Continue reading Militias and the Brazilian Economy
Quantification of Risk in Finance While risk may initially seem like an abstract concept, the ability to quantify and compare the risk which comes with acquisitions and investments is one of the concepts which falls at the heart of modern finance. This allows financial institutions to make decisions regarding investments by providing a metric to compare an investment’s return with the risk it is associated … Continue reading Quantification of Risk in Finance
Economic growth, most often measured by the Gross Domestic Product (GDP) growth rate, is the engine that propels nations from poverty to prosperity. It is the driving force behind rising living standards, the creation of new opportunities, and the expansion of human potential. Yet, the question remains as to how this varies between nations. Will the long-standing economic giants always be ahead or will less … Continue reading Testing for Convergence in HICs
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