Category: Economics
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Inflation
The inflation rate is a measure of the increase in asset prices, measuring the percentage change in the average price level from the previous year. Where a positive inflation rate means rising prices, a negative inflation rate means falling prices, and a declining positive inflation rate means rising prices at a…
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Property Rights & Political Stability – India
Even though India is a growing export economy, India is held back by the destructive government regulation that eliminated the rule of law. “China and India clearly stand out as the two largest middle-income countries of origin”. (WIPO, Cornell University, & INSEAD, 2014) Encouraging areas of opportunity associate around India’s…
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Price Floor or Ceiling, Binding Or Unbinding?
This is an excerpt from my article on Macroeconomic Calculations. If you get confused as to where you draw the line for a price floor or ceiling and whether its binding or unbinding then here is a good way to remember them, refer to the picture below. For an unbinding…
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Macroeconomic Calculations
In this article we will be discussing economic calculations such as national income (C, I, G), production function (marginal product of labor, marginal product of capital K), nominal and real interest rates, inflation rates, and the unemployment rate covering job finding and separation. It is important to become aware of…
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The Broken Window Fallacy – Frédéric Bastiat
The Broken Window Fallacy, by Frédéric Bastiat. Written in in his 1850 essay Ce qu’on voit et ce qu’on ne voit pas (That Which Is Seen and That Which Is Not Seen). The premise of the parable is that it aims to show the opportunity costs that are caused when…