The Lorenz Curve

Dealers provide liquidity in most financial markets. The dealers are those who connect sellers and buyers. This is through buying equity, bonds and even currency from those who want to sell them and selling them to those who want to buy them. …

In this blog I will be discussing: How banks transfer money How banks make a profit How the banks adhere to liquidity and solvency constrains So, the hierarchy of money is important because of its implication. Gold can buy you currency and vice versa, currency can buy you credit (sometimes…

I have written a blog on a similar topic to this, my “History of Banking” blog, in all fairness, I will admit that the blog was somewhat dull. But since then, I have begun a course on “The Economics of Money and Banking” and have found a new appreciation for…

The question sounds more philosophical than economic, yet in macroeconomics, the aim is to make decisions morally and beneficially. Many people accept that socialism is more just than capitalism, because of obvious reasons. One of them is the ability to remove poverty in a nation by distributing all the wealth…

DISCLAIMER, THIS IS MY VERSION OF AN ECONOMIC THEORY, I AM DOING A THOUGHT EXPERIMENT AND DO NOT TAKE MY WORD IN THIS SCENARIO, I AM JUST A 17-YEAR-OLD MAKING UP A SCENARIO AND USING SOME ECONOMICS AND GENERAL KNOWLEDGE TO SIMULATE WHAT HAPPENS, thank you and enjoy! Picture yourself…

This school is one of the more recent schools of economics as it surfaced in the 1930s. The theory was developed in the aftermath of the great depression. John Maynard Keynes, an economist from Cambridge University, neither supported the free market nor the communist ideals. Instead of this, he took…

Last month, in the US, the Fed (Federal reserve bank of the USA) chairman Jerome Powell changed his stance on “transitory inflation,” which he believed was the state of inflation in America, and now claims that inflation is no longer transitory. What does this mean? What does the phrase transitory…

The Austrian school of economics, founded by Carl Menger, saw that the world was evolving and for the first time in history, people were making a positive impact on society and playing a “positive-sum game”. Before the industrial revolution, the primary economic objective was to obtain a larger share of…

Classical school There have been various schools of economic thought throughout history, but I will be focussing on three over the next few posts, which I find the most fascinating: Classical, this blog; Austrian, the free-market (capitalist) school (next blog), and Keynesian; the school which has the most supporters in…