In July 2021, I wrote a piece titled “The Great Deficit Robbery”. It was an article cautioning against the new orthodoxy emerging among many mainstream economists and politicians suggesting that government spending had no limits, and that the once scary bogeyman of inflation was simply a relic of the past. I wrote that ‘if constant spending persists with no guardrails in sight, economic trouble may … Continue reading The Great Deficit Robbery 2.0
Quantitative tightening (QT) is the exact opposite of quantitative easing(QE); it’s the process used by central banks to decrease the money supply either by selling the assets they previously purchased or deciding against reinvesting the principal sum of maturing securities. We are more experienced with QE, which was introduced extensively in the aftermath of the global financial crisis to increase the supply of money and … Continue reading The Promise, Threats, and Responsibilities of a Pivot to Quantitative Tightening
When considering Ancient Rome, we usually conjure up images like grandiose temples of white marble and soldiers with rectangular shields, but the Roman financial system was, like many other aspects of their society, ahead of its time in terms of complexity, ingenuity, and efficiency: so much so, in fact, that it resembled our modern financial system in many respects. Therefore, it should not be of … Continue reading The Roman Financial Crisis of AD 33
Over the last 50 years, fiscal policy has played a limited role in controlling inflation in Britain, with Harold Wilson’s government being the last to use the policy to manage inflation on a large scale. Unfortunately for Wilson, it was the sensational failure of these policies that greatly contributed to the death of fiscal policy as an inflation management tool. In this essay, I will … Continue reading The Death of Fiscal Policy as a counter to Inflation
Gentrification is often held as a sign of economic progress, improving living conditions, and a worthwhile use of public and private funds. As most world economies are now recovering steadfastly from the impact of COVID, projects from London to Seoul have promised to gentrify lower-income neighbourhoods, revitalizing previously derelict communities, increasing the tax base, and improving public safety. Yet, whilst gentrification is widely considered an … Continue reading Gentrification: the double-edged sword
Less than five years after sanctions were lifted from Myanmar, army generals conducted a violent coup that shattered democracy in the region. World leaders were shocked at this sudden turn of events and reinstated sanctions, which immediately received accusations of only being symbolic. This has recently become a common criticism against sanctions: according to the Peterson Institute for International Economics, only 34% of sanctions are partially successful, … Continue reading How can governments make economic sanctions more effective?
In a decimalised economy like the UK, one pence coins are often regarded as useless, and rarely spent on goods. Instead, they are given as change for products. In the 1950s, these pennies were important on a daily basis, providing the means for transactions such as buying milk and eggs, which roughly cost 3p and 8p respectively. This utility has been lost today due to … Continue reading The future of the Penny
South Korea’s economy has a highly developed mixed economy. By nominal GDP, the country has the 4th largest economy in Asia and the 10th largest globally. However, there is something special about the South Korean economy that distinguishes it from others: it is dominated by chaebols. Understanding these chaebols is a necessity for anyone who aims to understand South Korean capitalism and society. The word … Continue reading Chaebols of South Korea
Weed? Pot? Ganja? These are familiar terms for some people, but less well known is the fact that marijuana sales account for more than $120 billion each year in tax revenue and create 1.6 million new jobs in the US alone. The legalisation of cannabis would see it officially become America’s largest cash crop and many people seem to be rooting for it, with only … Continue reading Marijuana: an economic high?
The relationship between international free trade and employment has long been controversial. Some economists argue free trade affects efficiency but has no effect on total employment in the medium and long term, whilst others argue that there are increased job opportunities due to a rise in exports. There are several reasons why a country would want to participate in foreign trade. Most obviously, one may … Continue reading Does Free Trade Cause Unemployment?
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