Articles on Economics

Econometrics – Meaning, Elements, Techniques & its Application

Numbers tell stories, reveal facts and underlying patterns. If put together and analyzed correctly, they offer insights and provide a...

Economics of Human Resource (HR) Decisions

The Make or Buy Decision Explained The Make or Buy decision forms the cornerstone of managerial economics wherein the decision...

Understanding Managerial Economics – Beginner and Advanced Concepts

Managerial Economics can be defined as amalgamation of economic theory with business practices so as to ease decision-making and future...

What is Quantitative Easing ?

Quantitative easing is an alternative way that modern central banks have invented to prop up the economy in a short...

Subprime Mortgage Crisis: An Introduction

As Safe As Houses! “As safe as houses”, this phrase is often used in our society. A house is supposed...

Types of Real Estate Investors

Real Estate markets are extremely complicated. The price movements in this market are usually slow and difficult to come by....

What is Gross Domestic Product (GDP) ?

Gross domestic product (GDP), this is a term which is familiar to pretty much anybody who has ever read any...

What is Unemployment ? – Definition of Unemployment

The detailed study of any subject must always start by understanding the definition of the subject at hand. This is...

Dot Com Bust: Starting Point of Subprime Mortgage Crisis

The subprime mortgage crisis is a unique case in the fact that this bubble started from an earlier present bubble...

The Downward Spiral of Unemployment

Unemployment is a highly talked about economic term in the modern economic world. Not a day passes by when we...

Economics of Human Resources: Productivity and Efficiency

How Productivity and Efficiency are the Root of HR Decision Making Who does not like productive employees who can get...

The Importance of GDP

In the previous article, we understood why the GDP number was created and what purpose is it supposed to serve....

Linear Regression Model – Prerequisites, Case Study, Goodness-of-Fit

Suppose you are an HR professional and want to determine: Whether age of an employee has a substantial effect on...

Scope of Managerial Economics

Managerial Economics deals with allocating the scarce resources in a manner that minimizes the cost. As we have already discussed,...

Quantitative Easing Tapering – Meaning & Its Importance

What Does Quantitative Easing (QE) Tapering Mean ? Quantitative easing (QE) means increasing the money supply of the system. This...

Real Estate Investing Myths

Amongst all investment options available, real estate is the one that buyers tend to get emotionally attached with. For this...

Economics of Human Resources Management: Hiring, Firing, and Reward Systems

The Changing Emphasis of HR Decisions Despite the widespread impression that Human Resources is distinct from the other profit generating...

Problem #1: GDP Disregards Debt

Debt was once an individual and social vice. Individuals and organizations in heavy debt were considered to be inefficient and...

Nature of Managerial Economics

Managers study managerial economics because it gives them insight to reign the functioning of the organization. If manager uses the...

Real Estate Investments: As Safe as Houses?

Investors usually refer to an extremely safe investment with the phrase “As Safe as Houses”. This shows the traditional mentality...

Unemployment Rate Calculation: Sub-Sets

The definition of unemployment provided us with some insight as to how the statistics are different than what an uninformed...

Advantages of Quantitative Easing

The strategy of quantitative easing is a new tool being used by Central Banks all over the world. Most big...

Applied Econometrics – Steps to Carry Out an Empirical Study

Operating a business has become far more challenging than ever it was. Increasing competition, looming economic crisis, mounting operating costs...

The Case Of Freddie Mac, Fannie Mae and Ginnie Mae

The role that the government played in causing the subprime mortgage crisis is highly debatable. However, the same cannot be...

Disadvantages of Quantitative Easing

The goal of the monetary policy of any economy is to provide stability. That is the purpose for which the...

The Economics of Human Resources in the Informal Economy

Nonexistent Rules in the Informal Economy The informal economy operates in a very different way from the formal economy. Whereas...

GDP and the Perpetual Debt Trap

In the previous article, we read about how the GDP system encourages incessant and reckless borrowing on the part of...

Managerial Economics and Micro Economics

Managerial Economics is basically a blend of Economics and Management. Two branches of economics i.e. micro economics and macro economics...

Real Estate and Money Supply

There is a direct relationship between the amount of money supply that is available in the system and the amount...

Types of Mortgages

The United States mortgage market was considered one of the most advanced markets in the world. It seemed like the...

Hypothesis Testing – Writing, Examples and Steps

An empirical study begins with writing a hypothesis. If there is no hypothesis, we will not be able to test...

Calculation of Unemployment: Example

We are now aware of the basic steps involved in the calculation of unemployment rate. We now know that there...

Effect of Quantitative Easing on Stock Markets

Quantitative easing (QE) has an effect on lot of areas within the economy. However, one of the most important effects...

Minimum Wage Fallacy

Most developed countries in the world have a minimum wage act. This means that there exist legislations in those countries...

Principles of Managerial Economics

Economic principles assist in rational reasoning and defined thinking. They develop logical ability and strength of a manager. Some important...

Basic Ratio Analysis of Real Estate Investing

Real estate investing is a sophisticated business. There are sophisticated techniques that are used by many diligent investors to carry...

Types of Mortgages from Borrowers Point of View

In the previous article, we studied about the different types of loans from the lenders point of view. Therefore we...

The Case Against Labor Unions

It is a common belief amongst the general population that labor unions work in the interest of the laborers. In...

Components of GDP

We have spoken in great detail about GDP. By now, we are aware of the dangers of setting GDP maximization...

GDP and Depleting Natural Resources

The GDP system’s absurdities do not end with social evils. Mindlessly following this system has also wrecked havoc on the...

Role of a Managerial Economist

A managerial economist helps the management by using his analytical skills and highly developed techniques in solving complex issues of...

Mortgage Products – Negative Amortization & Home Equity Line of Credit

In the previous two articles, we have studied the different types of mortgages from the borrowers as well as from...

Quantitative Easing and the Bond Market

Of all the markets in the world that are being affected by the policy of quantitative easing (QE) tapering, the...

Straight Pay and Variable Pay

Bonuses and their Evolution over Time In the initial decades of the 20th century when the modern corporation began to...

Transaction Costs in the Real Estate Market

Flipping properties may sound like a good idea to the novice real estate investor. However, anyone who has even engaged...

What is the Ideal Unemployment Rate ?

Unemployment is considered to be one of the biggest social evils that is affecting our lives today. Its economic impact...

The Discouraged Worker Flaw

In this article, we will explain the first and probably the largest flaw in the calculation of unemployment rate i.e....

GDP and Natural Disasters

GDP considers natural disasters like earthquakes, floods, tsunamis and hurricanes as being favorable to the economy. Add to this the...

Information Asymmetry in the Real Estate Market

Successful investors know that it is not the asset class that makes one rich. Rather it is information about the...

New Age Financial Securities – Mortgage Backed Securities & Credit Default Swaps

The new age mortgage market was extremely unlike the old one. The old one used to work based on a...

Quantitative Easing and Gold

The policy of quantitative easing (QE) affects almost every single market in the world. The modern day financial markets are...

What is Results Only Work Environment (ROWE) and Why is it Important ?

Traditional Workplace Time Requirements Ever since the modern corporation evolved into its present form, it has become the norm for...

Consumer Demand – Demand Curve, Demand Function & Law of Demand

What is Demand? Demand for a commodity refers to the quantity of the commodity that people are willing to purchase...

GDP and Terrorism

In the past few articles, we have spoken about the absurdity of the GDP system. This absurdity has been brought...

Price Elasticity of Supply

Just like the law of demand, the law of supply also explains the qualitative relationship between price and supply. Qualitative...

Pros and Cons of Using Social Media for Recruitment and Monitoring Purposes

Social Media and Access to Personal Information With the advent of Social Media sites such as Facebook, Twitter, Instagram, and...

Quantitative Easing and the Forex Market

The policy of quantitative easing (QE) and quantitative easing (QE) tapering has an effect on many markets worldwide. One of...

The True Cost of Owning a Property

Home ownership is often considered by the layman as being a single expense i.e. the purchase price of the property....

What is Employment ? – Definition and Its Fallacies

In the previous few articles, we were studying about the definition of unemployment. The idea was to understand in a...

Collateralized Debt Obligations and Tranching

In the previous article, we learned about mortgage backed securities. We learned about how mortgages are pooled and then a...

Determinants of Price Elasticity of Supply

Like price elasticity of demand, price elasticity of supply is also dependent on many factors. Some of these factors are...

Frictional Unemployment – Definition, Causes and Cure

There are different types of unemployments which do not arise from the same cause and do not have the same...

GDP and the Dirty War Business

In the previous few articles we have seen how the GDP approach to calculating economic growth has led to the...

How Firms Recruit Employees in the Age of Big Data and Analytics ?

How do firms recruit employees in the age of Big Data? While this might seem to be a question with...

Quantitative Easing and Interest Rates

Quantitative Easing (QE) impacts almost every market in the globe. This is because it impacts certain fundamental economic factors which...

Behavioral Aspects: Real Estate Investing

Investments are supposed to be financial decisions. When we take finance classes, we are taught models to evaluate investments and...

Credit Market Freeze – Causes and its Importance

The sub-prime mortgage crisis and the credit freeze are often spoken about in the same breath. In fact, the layman...

Marketing and Seasonal Demand for Goods and Services

What is Seasonal Demand ? Marketing is the process of meeting needs that are both existing as well as unmet....

Alternatives to Quantitative Easing

The Fed and the United States government have chosen the Quantitative Easing (QE) policy as the best policy to overcome...

Real Estate Investing vs Investing For Cash Flows

Different types of investors invest in real estate for various reasons. Two of the most common reasons are investing to...

Structural Unemployment – Definition, Causes and Cure

In the previous article, we studied about frictional unemployment. We understood as to why frictional unemployment is a temporary situation...

Economics of Human Resources: Why a Minimum Wage is Needed for Employees

What is a Minimum Wage and Why is it so Contentious? Many of us would be familiar with the term...

Mortgage Lending: Borrower Approach vs Collateral Approach

The subprime mortgage crisis was basically a clash of ideologies. These ideologies were related to the centuries old belief regarding...

China’s Modern Day Ghost Cities

The GDP system has found several criticisms. However, none of the criticisms have been as apparent as an unusual phenomenon...

Green GDP

Green GDP In the search for a better system to account for our economy, researchers have looked at various options....

The Growing Trend of Jobless Economic Growth

Economic growth has always been the focus of all governments. This is because it was believed that if economic growth...

Quantitative Easing (QE): Major Instances in History

The policy of Quantitative Easing (QE) is relatively nascent to the world economics. Despite is recent birth this policy has...

Real Estate Investment Trusts (REITs)

Real Estate Investment Trusts (REITs) have become the buzzword when it comes to investing in real estate. They have provided...

The Big Bust Washington Mutual (WaMu)

Washington Mutual (WaMu) was one of the oldest and biggest banks in the United States. Like many of its peers,...

Introduction to Business Economics

Historical Development of Business Economics For much of the 20th century, if you had wanted to study business management, you...

Cyclical Unemployment – Definition, Causes and Cure

In the previous two articles, we studied about frictional and structural unemployment. They can be considered to be the mild...

The Economics of Licensed Professions

Milton Friedman is one of the most accomplished economists of all times. His view on economic subjects usually shows a...

What is Fractional Reserve Banking and its Connection to Modern Economics

What is Fractional Reserve Banking ? If you are entrepreneur setting up your own business, you need to understand how...

General Motors and the Subprime Crisis

General Motors (GM) was one of the most unexpected casualties in the subprime mortgage crisis. This was because of the...

Impact of Quantitative Easing Tapering on Various Stakeholders

The Quantitative Easing (QE) policy has impacted the lives of pretty much everybody on this planet. The reverse policy of...

India vs. China: Is There Even a Comparison ?

The GDP growth rate of India overtook the GDP growth rate of China in 2015. This has fuelled many newspaper...

Mechanization: A Boon or a Bane

Apart from minimum wages, another hotly debated economic issue is that of mechanization. Mechanization has been demonized by many critics...

Advantages to Investing in Real Estate Investment Trusts

In the previous article we studies about what Real Estate Investment Trusts (REITs) are. We also understood that they have...

Effect of Quantitative Easing on Emerging Markets

The average person believes that Quantitative Easing (QE) is a policy being implemented in developed nations like the United States,...

Employee Activism at Google and Lessons for Other Firms from New Forms of Unionism

The How, What, and Why of Employee Activism at Google In recent months, the preeminent Tech Firm and Silicon Valley...

The Changing Contours of the Global Currency Reserve System

What is a Reserve Currency ? The term reserve currency means that it is the currency that is used by...

Government Spending: A Cure for Unemployment

All over the world, governments are held accountable for the unemployment rates prevalent in their country. It is as if,...

How To Predict Real Estate Market and Identify Asset Bubbles ?

Housing prices can go up under two main scenarios: One is when the fundamental economy of a given location has...

The Return of Subprime Mortgages

The 2008 crisis in America was mainly caused by making subprime housing loans. The crisis first gripped some cities in...

Universal Basic Income: An Idea Whose Time Has Come ?

Introduction: The History of Universal Basic Income (UBI) In recent months, there has been much discussion worldwide about a concept...

How Savings Affect the Economy?

Economics is divided on the role of savings. Many economists believe that saving is a personal virtue but social vice....

What is Shadow Labor ?

Shadow work is not an official term that has been coined by mainstream economists. Instead, it is a term used...

Why Properties Sell for Less Than Their Worth ?

If the words of Warren Buffet are to be believed, investing is all about buying dollar bills that are selling...

Why the Gig Economy will not Take Over the Future?

The rise of firms like Uber, Lyft, TaskRabbit, and Airbnb have startled many economists. The number of people working for...

The “Helicopter Money” Policy

Milton Friedman is one of the great economists who has lived during the 20th century. Many modern-day economic policies are...

The Big Fall: Lehman Brothers

History Lehman Brothers started as a grocery store in Alabama in 1844. Over the years Lehman Brothers grew into a...

What is Capital Account Convertibility and How it Affects a Country

What is Capital Account Convertibility ? Capital Account Convertibility means that the currency of a country can be converted into...

GDP and Healthcare

In the past article, we discussed how GDP views war and why it is dangerous for all of us since...

The Rise of the Informal Economy and the Need to Embrace it and engage with it

What is the Informal Economy or the System D? We see them everywhere and we even do business with them...

Why Gig Work is Here to Stay and How We Need New Laws and Institutions for Them

How Gig Work Went Mainstream and is Here to Stay and Why We Need to Respond One of the more...

Why Increasing Employment is a Faulty Goal

President Trump has been trumpeting about the benefits of a policy that increases employment. His policy is centered on creating...

Your Home: Rent vs. Buy Decision

Control of real estate can be taken in two ways. One is to take permanent control i.e. take the ownership...

The Big Fall: Bear Stearns

The subprime mortgage crisis is known for the spectacular collapse of some of the largest financial institutions in almost no...

How the Gig Economy is Growing in US/Canada and What Stakeholders Need to Do?

How the US and Canada Are In the “Pole” Position for the Gig Economy/Workers The rise of the Gig Economy...

Japanese Real Estate Market

The Japanese real estate story is important as well as different. Most property market stories that one would hear include...

The Problems with the GDP System and Requirements from the New Metric

In the previous articles, we have discussed the various pitfalls of the GDP system. We have also made the case...

What is Seasonal Employment and How to Manage it ?

What is Seasonal Employment ? The term seasonal employment refers to the practice of workers and professionals finding work during...

Currency Wars and the Making of the Next Financial Crisis in the Global Economy

The Recent Currency Wars The recent drop in the value of several emerging market currencies coupled with the fact that...

The Future of Energy and its Implications for Businesses and Societies

The Oil based Paradigm and its Impact on Businesses and Societies The whole edifice of society is built on energy....

What is Trickle down Economics and How it Works and Doesn’t Work in the Real World

What is Trickle down Economics, Why it Became Popular, and How it Works in Practice In economic theory, the concept...

The American Real Estate Market

The United States of America is one of the most developed countries in the world. It is also known for...

The Creator Economy Is a Passport to Riches for a Few, a Pipe Dream for the Rest

Why Wannabe Influencers and Creators Need a Reality Check on Social Media The rise of the Creator Economy in recent...

Why There Cannot be Growth without an Energy Transition

The Other Causes of the Present Recession We all need to grow in order to survive and progress through our...

GDP: The Broken Window Fallacy

There is one fact about the GDP which is often misquoted in the media. I am sure all of us...

China’s Real Estate Market

The real estate market in China has undergone a complete shift. At one point in time, the Chinese workers were...

The Indian Real Estate Market

In the previous couple of articles we have discussed about the real estate markets in the United States as well...

Role of Venture Capitalists and Angel Investors in Incubating New Ventures

Venture Capitalists as Incubators of New Start-ups Venture capitalists or Angel investors are entities and individuals who fund startups and...

Social Evil #1: War and GDP

In the previous article, we learned about the concept of the broken window fallacy. We learned that in general, the...

The Gloomy outlook for the real estate sector in India and its impact on first time buyers

Turmoil and Turbulence in the Indian Real Estate Sector It would be an understatement to say that the real estate...

New Immigration Policies in the West and their Impact on Immigration

It is not a Flat World After All The famous cheerleader for globalization, Thomas Friedman, called the current day world...

Bhutan’s Gross Happiness Index

The fact that GDP is a broken system is well known. Many countries across the world have attempted to create...

Economic Benefits of Immigration and how to Manage Flow of Migrants

Recent Developments in Europe In recent months, the world has witnessed unprecedented flows of refugees and migrants from the conflict...

Performance Measurement for Real Estate Investments

Accurate and reliable real estate valuations are difficult to obtain. As a result, gauging whether a property investment has turned...

How Employment Rules and Tax Laws Affect Managers and Working Professionals

How Labor Laws and Employment Rules Impact Managers The nature of the employment rules and the governmental policies that regulate...

The Link between Credit Growth and Real Estate Bubbles

Real estate is a controversial investment. Some are of the opinion that it is the best investment that one can...

Advantages and Disadvantages of Deregulation for Businesses and Consumers

What is Deregulation and how does it Work ? Deregulation is the phenomenon wherein governments signal their intention to leave...

The Subvention Scheme Trap

Real estate investments are known for fancy financing schemes. The right financing can make any real estate investment very lucrative...

Impact of Political Stability on Businesses and Working Professionals

The Perils of Political Instability and Uncertainty If there is one thing that business leaders and entrepreneurs hate that is...

Are Increasing Housing Prices Good for the Economy?

The Drudge report is an economic news report run by conservative right-wing Republicans. They have claimed that the economy of...

What is Inflation and How Does it Affect Professionals, Businesses, and Individuals

Inflation and What it Means for Consumers We all would have heard the term inflation and most of us would...

Co-Working Spaces: The New Trend in Real Estate

There is a relatively new form of a business model emerging in the real estate space across the world. The...

How Rising Oil Prices Threaten Economic Growth and Impact Businesses and Managers

How Rising Oil Prices Cause Inflation It is a fact of business that increases in the prices of raw materials...

The Process of Making a Real Estate Price Index

The real estate sector is deeply intertwined with the overall economy. An increase in the real estate sector causes a...

Five Reasons Why Real Estate Increases in Value

Real estate is probably the single largest investments in the portfolio of every family across the globe. Most middle class...

Rekindling the Animal Spirits in the Global Economy to Rejuvenate Growth

The Metaphor of the Animal Spirits to Describe the Markets For those of us who observe the financial markets gyrate...

Is Less Government the Answer in Market Economies or the Other Way Around ?

The Debate between Neoliberalism and Socialism An ongoing debate in the United States and in Europe is whether there must...

Why the Indian Real Estate Sector is Down in the Dumps and How it can be Revived

Why is the Indian Real Estate Sector Down in the Dumps? It is no secret that the Indian Real Estate...

The Hong Kong Housing Problem

Hong Kong has been ranked as the most expensive city to live in. Survey after survey has found that the...

Are Asian Economies headed for a Repeat of the 1997 Asian Financial Crisis?

Slowdown in China There has been a noticeable slowdown in the Chinese economy over the last few months. Coupled with...

Proptech: The Future of Real Estate

The rise of the internet and mobile technology has fundamentally changed the way we live. All sectors of the economy...

The Age of Austerity in the West in Response to the Global Economic Crisis

The Age of Austerity The gloomy economic conditions all over the world have prompted governments to cut back on social...

The “Invitation Homes” Model For Real Estate

During the year 2008, America was reeling from a real estate crisis. This crisis was so severe that it had...

What Is Hyperinflation ?

Hyperinflation is what, in layman terms can be called as the economic equivalent of doomsday. Modern societies have become more...

Famous Cases of Hyperinflation

The common perception amongst lay people is that hyperinflation is the economic equivalent of a doomsday. True, that the consequences...

Why The Indian Real Estate Market Will Not Appreciate Any Longer?

The Indian real estate market has given one of the best returns for any investment class worldwide. However, these returns...

The Impact of Real Estate Bankruptcies

The past five years have been very difficult for the Indian real estate sector. The entire sector was coming from...

Relationship Between Inflation and Government

The relationship between inflation and the government’s stance on the issue is filled with obscurity and confusion. There have been...

Definition of Inflation

The definition of inflation has undergone a subtle change across the ages. Economists earlier used to define inflation in a...

7 Reasons Why Real Estate Is the Worst Investment

Owning a house is a dream for most people around the world. This is the reason why investment in housing...

Why Does the Definition of Inflation Matter?

We discussed the definition of inflation in a lot of detail in the previous article. The previous article was meant...

Why Property Prices are Crashing in Every Major City in the World?

In the decade after the Great Recession of 2008, property prices have risen by leaps and bounds. In many places...

Price Fixing: A Flawed Approach

The wrong definition of inflation has caused a lot of harm to modern day nations as well as their economies....

Is the Canadian Government Creating a new Real Estate Bubble?

The housing market in Canada has gone through a full cycle since 2009. During 2009, the prices were at an...

How Inflation Is Currently Measured?

There is a general saying in the business world, “What cannot be measured cannot be managed!” This is true of...

The Problem with REITs

Real estate investment trusts are being extensively used by investors and speculators to bet on the real estate sector. REITs...

Managing the Affordable Housing Problem

The lack of affordable housing has become a serious issue across the entire world. This is primarily because of the...

Problems: Measurement of Inflation

There is a general saying in the business world, “What cannot be measured cannot be managed!” This is true of...

The Problem with Comparing Inflation Numbers

In the previous couple of articles, we listed down the problems with the procedure used to collect numbers related to...

Choosing the Right Counterparty in Real Estate

The average person assumes that buying real estate from an individual is about the same thing as buying it from...

How Should Inflation Be Measured?

In the previous few articles, a series of arguments has been made as to why the current way we use...

Inflation: A Hidden Tax

Economists may argue on many things. However, they all agree on one thing i.e. the biggest possible economic nemesis that...

Myth: Inflation and Scarcity

The change in the definition of inflation has caused a lot of confusion. A prime example of this confusion is...

Inflation and Wealth Redistribution

We have already ascertained that inflation is a hidden tax. It is a discretionary power that governments have at their...

The Disturbing Wealth Gap and Why it Matters ?

If economist Karl Marx were alive today, he would have famously proclaimed that his assertion was correct. He once famously...

Is a World Without Inflation Possible?

In the previous many articles, we have been discussing a lot about the various concepts of inflation. We have understood...

What is Meant by Inclusive Growth and Why it is Important ?

We often hear the term inclusive growth in the papers and in various media where experts pronounce that while growth...

Importance of Infrastructure in a Nation’s Development

Why are Some Countries more advanced than the others ? Why are the Western countries more advanced than many Asian...

Evaluating the Pros and Cons of Supply Side Economics

What is Supply Side economics ? Supply side economics is that branch of economics that deals with production of goods...

Pros and Cons of the Uber Economy

What is the Uber Economy ? We all have heard if not used the services of the app based ride...

Ubernomics: The Questionable Business Model of a Unicorn

Uber is the most valuable startup in the world today. It is valued at $51 billion which is more than...

Companies Need to Create Long Term Value to Survive the Uber Competitive Market

The 24/7 Real Time Global Marketplace Makes Firms Live for the Moment The present global marketplace as well as regional...

Why Savers are Losers in the 21st Century ?

Saving money has historically been considered to be a virtue. Perhaps, it was the most important one with the most...

Top Five Factors That Spur Economic Growth

The world has witnesses the rise and fall of many great economic empires. It is safe to say that we...

Overview of the Sharing Economy and the Emerging World of Work

How the Sharing Economy Looks Like ? Anybody who has hired an Uber cab or a cab from any other...

The 10 Trillion Dollar Sovereign Wealth Fund Game!

Imagine a fund with so much money that it held 1% of all the equity from all the stock exchanges...

The Great Chinese Debt Binge

The global financial system is in the middle of a manufactured boom. Earlier, the economies would boom on their own...

Soak the Middle Class

The economic paradigm has always been defined as the battle between the haves, and the have-not’s i.e. the “rich” and...

Small Bribes that Lead to Big Losses

Corruption is a serious problem in many countries in the world. The world’s fastest growing economy India has taken a...

Economics of Low Cost Airlines

Airlines are a tough cut-throat business. A large number of airlines across the world are making losses, and others are...

The Labor Theory of Value

The most fundamental question in economics is the determination of the price of any good or service, i.e., the question...

What Happens When Countries Do Not Pay Back Their Debt?

Sovereign debt is regularly in the news even though we may not realize it. Several poor countries keep defaulting on...

The Economics of Biofuels

Fossil fuels are considered to be the biggest environmental hazards of our time. The biggest objective of several global organizations...

The Business Case for Immigration: How Immigration and Immigrants Help the Economy

The Backlash against Immigration The issue of immigration has been in the news lately for all the wrong reasons. Starting...

The Left Wing Theory of Economic Growth

Economics is not a natural science. Instead, it is a social science. This means that there are no perfect and...

Saving vs. Spending

John Maynard Keynes once said that saving money is an individual virtue but a societal vice. This has been the...

Quantitative Easing and Income Inequality

Ever since quantitative easing has been implemented as a mainstream policy, Central banks have had to fend off charges that...

The Liquidity Trap

The liquidity trap is a concept which is believed by some economists whereas it is not believed by the others....

How Venture Capital is Destroying the Economy?

Uber has recently launched an Initial Public Offer (IPO). The company is trying to sell $10 billion worth of shares...

Is Deflation Really Bad for the Economy?

The word deflation has an extremely negative connotation in economic circles. Modern day economists portray deflation as the situation which...

How the Law of Diminishing Returns Helps Explains the Contemporary Global Economy

What is the Law of Diminishing Returns and why we are Regressing Progressively? Economics is a fascinating subject that helps...

Is the McKinsey Model of Internal Democracy Worth Emulating by Other Corporates?

What is the McKinsey Model of Internal Democracy and How it Works and its Advantages The famous business consulting firm,...

What are Monopolies and How They Help and Harm the Economy and Their Regulation

How Economies Work Best When Free Market Forces are Truly Free and Fair According to Economic Theories, Free Market Economies...

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