Setting the Context When it comes to investing money – the primary goal is to identify companies that provide you the highest return on capital. Now there are companies which shoot up in stock-price only to come plummeting down, there are hot-picks by business channels every day, month and quarter. But every stock has it’s […]
Category: Economy
Different Economic Schools of Thought
In this week’s article, I am going to walk you through 3 Economic schools of thought, namely, Laissez-Faire Economics, Neoclassical Economics and Keynesian Economics. So, let’s jump right to it! Laissez–faire Economics What is Laissez–faire Economics? According to the “Laissez-faire” economic school of thought, the economy works best when the government does not intervene in […]
Attention Economics
Introduction We each have only 24 hours in the day. What we choose to do during these 24 hours and where we choose to allocate our attention during this time will increasingly determine who we become and the quality of our lives. Now we’ve all heard some version or the other of this “quote” in our […]
Hyperinflation
What would you do if you had a 100 billion dollars? Hold your horses. Forgot to mention those 100 billion dollars would be Zimbabwe dollars. The country has been spiralling in hyperinflation for a long time now. Since the year 2000, the prices have only been shooting upwards and onwards at a crazy rate. As […]
INTRODUCTION There’s been a lot of discussions about the emergence of a new system where a duopoly might exist in terms of Economic Supremacy between America and China. Some discussions even suggest we might see a future where China might supersede America in terms of Military, Technology and Economic power. While China’s meteoric rise to […]
Monetary Policy Introduced
Setting the Context: In this week’s article, we shall go over “What Monetary Policy exactly means? What are the types of monetary policies at the bay of the Central Bank? What are the challenges that arise in implementing them successfully? Then finally, a mini snapshot is presented on India’s policy response to the pandemic. What […]
Introduction to Economic Cycles
INTRODUCTION This week, let’s focus on getting the basics of an Economic Cycle right. When you’re through with this article, you’d no longer feel lost when the wizards on Financial Times say stuff like “Expect a serious economic contraction in Q2 of year 2034″. Alright, let’s jump right into it! What is a Cycle? A […]
Shapes of Economic Recovery
In order to understand the behaviour of the economic recovery from the COVID-19 pandemic, the different shapes of recovery has been a hot topic of discussion in most forums. Howard Marks draws a beautiful analogy in his memo stating, “The government will provide life support to the economy during the coma and bring the patient […]
Who knew markets could throw tantrums too? That’s exactly what happened in the year 2013 – when the market collectively reacted to the possibility of the Fed stopping it’s large-scale bond purchase program. Concept: What was the”Bond-purchasing” program about? The Fed started purchasing large amounts of treasury bonds and other financial assets, in order to […]
Economic Moat
Setting the context: In this article, let’s understand the term “Economic Moat”, what it entails and how we can identify one. What is an Economic Moat? This term was popularised by Warren Buffet. An Economic Moat is a company which can retain a competitive advantage over its peers in the long run and thus protect […]