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Thursday, 7 January 2021

Bitcoin's Bull Should Fear Its Other Scarcity Problem

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As the value of this asset class rises, generating price spikes becomes increasingly difficult. The Theory behind Bitcoins The supply of Bit...
Thursday, 24 December 2020

A 300-year bubble worth remembering: South Sea Bubble

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By Edward Chancellor LONDON (Reuters Breakingviews) -  Next year marks the 300th anniversary of England’s most notorious speculative mania....
Tuesday, 22 December 2020

Central-bank Interest rates and Interbank rates in Europe or Fed funds rates in the U.S.

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Central-bank interest rates Reducing interest rates has also been shown to be a valuable tool to control economic growth.   When a central...

A bank's ability to provide loans

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 A bank's ability to provide loans is limited by only 2 things: the amount of its deposits and its reserve requirements.  The reserve re...

The Multiplier Effecct

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The reason central bank monetary policy works so well is because of the multiplier effect. Basically, money we deposit in our banks doesn...
Saturday, 19 December 2020

The main tool for fighting uncontrolled inflation: reduce the money supply

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The main tool for fighting uncontrolled inflation is for the government and local monetary authorities to reduce the money supply. Since mos...

Inflation versus Deflation

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Inflation and hyperinflation By the time the popular Venezuelan government called for next economic measures to end rampant hyperinflation ...

Fighting excessive deflation once interest rates have been reduced to zero

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Fighting excessive deflation is in some ways more difficult than fighting hyperinflation. During inflationary times , there is basically n...

Negative interest rates

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In times of negative interest rates depositors are essentially being charged to store their money in the bank. Negative interest rates has ...

Quantitative easing: how is this done?

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Central banks use quantitative easing to create money Faced with the economic meltdown following the 2008 crash, some central banks opted to...

How populist leaders use your economic and political illiteracy?

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Populist leaders Solving the economic crises was presented as the reason for expanding government power and limiting citizens' rights. ...

International Migrants Day 18th December 2020

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Immigration has become the number one issue for many voters and governments around the world. By the end of the 2010s, more than 250 millio...
Friday, 18 December 2020

The EU withdrawal process facing the United Kingdom.

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 The EU withdrawal process facing the United Kingdom. Options 1.  No deal. 2.  Preferential access to the EU markets "No deal" Thi...

Understanding Brexit

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Brexit referendum of 2016 in UK:  To stay or to leave the European Union? Arguments for leaving the EU United Kingdom had been paying to the...

US unilaterally imposing tariffs on many foreign imports in 2018

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 In 2018, the American government began unilaterally imposing tariffs on many foreign imports. This tactic was seen as a direct affront to ...

Bilateral Free-Trade Agreements (FTAs) and World Trade Organization (WTO)

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Failure of the Doha Round of free-trade talks The Doha Round of free-trade talks languished during the first years of the twenty-first cen...

Barriers to world trade: tariffs, quotas and subsidies

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The three forms of trade barriers There are 3 forms of barriers to trade: tariffs, quotas , and  subsidies . Tariffs are a form of tax.  T...
Thursday, 17 December 2020

Multiparty trade system. Current account is balanced by the country's capital account.

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Multiparty trade system In any multi-party trade system, there will always be imbalances, deficits or surpluses in the monetary value of g...

All-out Trade War

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All-out Trade War An all-out trade war usually ends up hurting almost everyone in a given economy, even those segments the politicians sa...

Trade wars in the past

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 1.  Opium Wars Trade wars in the past have sometime ended with actual military conflict. The Opium Wars between the Qing dynasty and the Br...