Posts Tagged Economics – Page 2

A Mathematical Gem from Euler

By Dr. Hassan Shirvani–The Swiss mathematician Leonhard Euler (1707–1783) is widely considered as one of the greatest mathematicians who ever lived.  He made fundamental and path-breaking contributions to many areas of mathematics and physics.  In the following example, Euler displays

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A Critique of Behavioral Finance

By Dr. Hassan Shirvani—The recent global financial crisis has raised serious questions about the rationality of the securities markets.  In rational markets, prices tend to closely track their fundamental values, so that there is little or no chance of getting price bubbles.  During the run-up to the recent crisis,

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Economic Inequality in America

By Dr. Hassan Shirvani–The impressive body of empirical evidence recently furnished by the French economist Thomas Piketty and his associates clearly demonstrates that there is a worsening trend of income and wealth inequality in America.  This trend, in effect since the

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Is There An Aerotropolis In Your Future?

By Dr. Roger Morefield —   AEROTROPOLIS – THE “FIFTH WAVE” An aerotropolis is a city anchored by an airport. Your first reaction to this may be, “huh?” Like most people, you might see the airport as a place to

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The Economics of Karl Marx

By Dr. Hassan Shirvani —Karl Marx (1818-1883) was one of the most influential economists of the 19th century. His economics provided a bridge between the classical economics (1776-1850) and the neoclassical economics (1870-1936), with the latter being a precursor to

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Does the U.S. Government Debt Fit in a Bucket?

By Dr. Pierre Canac —Nobody will disagree that $12.8tn is a large and potentially scary number! That is the U.S. Gross Federal Debt held by the public at the end of 2014. However, if you divide this number by the

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Liquidity Traps: Old and New

By Hassan Shirvani—- The concept of a liquidity trap, introduced by the British economist John Maynard Keynes during the Great Depression of the 1930s, refers to the situation in which monetary policy becomes largely impotent in lowering interest rates to

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Is it Time for Europe to Call in the Helicopter?

By Dr. Pierre Canac–   “Let us suppose now that one day a helicopter flies over this community and drops an additional $1000 in bills from the sky, …. Let us suppose further that everyone is convinced that this is

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Germany and Greece Need to Learn How to Tango Together

By Dr. Pierre Canac—Prior to the 2007-2008 financial crisis, cross-countries financial flows triggered global imbalances whereby some countries experienced large current account surpluses (and capital outflows) while others faced large current account deficits (and capital inflows). Current Account and Capital

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Negative Interest Rates: Unusual and a Difficult Phenomenon to Explain

With respect to interest rates, we live in a very interesting and indeed historical time. In some European countries, nominal interest rates are negative (while they are close to zero in the United States). A short while back this was

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