Posts Tagged ‘Economics’
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 Flows A country with a large current account deficit by definition has a large excess…
Read MoreNegative 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 thought to be impossible. Until it actually happened, it would have been difficult to imagine…
Read MoreFallacy of Composition in Economics
By Dr. Hassan Shirvani —-The fallacy of composition refers to the logically untenable position that what is true for a member of a group must necessarily also be true for the group as a whole. Perhaps a good example of this fallacy is the assertion that since an individual in a crowded room can obtain…
Read MoreThe Economics of Friedrich Hayek
By Dr. Hassan Shirvani— Conservatives tend to idolize the Austrian economist Friedrich Hayek (1899-1992) in the same way that liberals like to lionize the British economist John Maynard Keynes (1883-1946). Indeed, during the Great Depression of the 1930s, the debate between the supporters of Hayek and Keynes dominated much of the academic economic scene. The…
Read MoreInvestor Sentiment and Global Exchange Traded Funds
By Dr. Gulfem Bayram — The exchange traded funds (ETFs) are securities that track stock indexes, commodities, or baskets of assets, and they are traded on stock markets just like individual stocks. These unique securities have become increasingly popular in recent years as they offer greater diversity and flexibility for individual investors. Rapid Growth of…
Read MoreSay Goodbye to “Homo economicus”: The New Science of Behavioral Economics
By Dr. Roger Morefield — HOMO ECONOMICUS AND PARADIGM SHIFT In his 1962 book, The Structure of Scientific Revolutions, Thomas Kuhn described the process of what he called “paradigm shift,” which is a change in the basic assumptions underlying a science. Recent advances in the theory of consumer behavior have allowed the new science…
Read More2014 Election Realities
By Dr. David Schein — A groundswell, also called a “wave” in the media, has swept the Republicans (“GOP”) into control of the US Senate and increased their lead in the US Congress. The implications for the next two years with Obama in the White House and beyond have lead to a number of quick…
Read MoreA Primer on Keynesian Economics
By Dr. Hassan Shirvani —Before John Maynard Keynes published his General Theory of Employment, Interest, and Money in 1936, the prevailing view among most economists was that modern economies are characterized by perfectly competitive markets, in which flexible prices and wages cleared all markets and, hence, ensured continuous full employment. Pointing to the Great Depression…
Read MoreLa Paradoja que Es Colombia
Escrito Por Dr. Roger Morefield –- Bienvenidos a la “Nueva Colombia” (Read this post in English) Basado en el Ingreso Nacional Bruto per cápita (INB), Colombia llena los requisitos del Banco Mundial que la catalogan como un país de ingreso medio alto. Aun así, todavía tiene características de un país en desarrollo de bajos ingresos.…
Read MoreThe Invisible Link Between Trust, Profits, And Prosperity
By Miguel Martinez-Zavala — Businesses worldwide are facing tough challenges. The European Union’s economic problems, and increasing uncertainty, are driven by unforeseen events. Such events include: the Ukraine’s crisis, the sociopolitical volatility of the Middle East and its subsequent global economic effects, and the feeble U.S. economic growth that seems to be the new norm.…
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