Fiscal policy involves the strategic manipulation of governmental expenditures and tax structures to alter economic trajectories. In essence, governments use several instruments of fiscal policy to achieve varied goals and…
The 1930s Great Depression saw U.S. unemployment peak at 25%, forcing millions into bread lines for sustenance. Today, fiscal policy represents a crucial economic management approach for governments, deploying taxation and…
A recent study examined 17 countries across 180 years, unveiling an intriguing fact: 65 out of 73 deflation episodes did not trigger an economic decline. This discovery, hence, challenges long-standing…
Cost-push inflation, a phenomenon capable of raising prices by huge amounts, signifies a dramatic shift in economic dynamics. It manifests when the overall price levels elevate due to escalations in labour…
It is vital to recognize that the Central Banks often target a consistent 2% inflation rate. This is to bolster ideal job conditions and stable prices within the economies. At its…
Inflation, far from being a mere statistic, acts as a powerful force reshaping economic terrains. In the United States, for instance, the Consumer Price Index for All Urban Consumers (CPI-U)…
Comparative Advantage theory, attributed to David Ricardo, the English political economist of the early 19th century, provides deep insights into the benefits of specialization and trade among nations. Comparative advantage…
The theory of absolute advantage, fashioned by esteemed economist Adam Smith in the 18th century, offers a seminal lens into the merits of international commerce. Defined as the prowess of an…
In 1986, a mere 176 Export Processing Zones (EPZs) operated in 47 countries according to the International Labour Organisation. By 2015, approximately 4,300 EPZs were found in over 130 nations. This surge…
In 2021, U.S. multinational corporations employed an astonishing 43.3 million workers worldwide. This fact highlights their significant impact and extensive global reach. These giants, also known as MNCs, are instrumental in the advancement…
According to dependency theory, the flow of resources from a "periphery" of impoverished states to a "core" of affluent nations results in the latter's enrichment while sacrificing the former. This pioneering concept,…
Has demonetisation in India been a game-changer or a costly misstep? On 8 November 2016, India embarked on an unprecedented experiment by demonetising high-value currency notes of INR 500 and 1,000. The…
Stagflation is a rare economic phenomenon characterized by high inflation and high unemployment, accompanied by stagnant economic growth. Here, we will further explore its meaning and significance, its causes, and…
The Probit Model is used when we have a binary or qualitative dependent variable in the model. Similar to the Logit Model, the Probit Model overcomes the difficulties or problems…
The Logit Model is used to estimate models with a qualitative binary dependent variable. It overcomes the problems associated with the Linear Probability Model (LPM). In the post on LPM,…
