The relevancy of probability in economics
byModern economics in addition to sophisticated mathematics also employs probability distributions. What is probability? The probability of an event is the proportion of times…
Economics
The Looming Crisis in the Private Provision of Public Services Close Parallels with the Systemic Failure of Banks
byThe collapse in January of Carillion PLC, the UK’s second largest construction and outsourcing company has attracted considerable media coverage. Carillion was principally engaged…
From the Moneyness Blog: Electronic money will only save central banks from subjugation if it is anonymous
by50 SEK banknote issued by the Riksbank in 1960 “Do we need an eKrona?” asks Stefan Ingves, the Governor of the Riksbank, Sweden’s central bank. The…
A monster in plain sight
by“Interesting. Sex works even better than chocolate to modify behaviour. I wonder if anyone else has stumbled onto that.” Sheldon Cooper (Jim…
A warning knell from the housing market – inciting a riot?
byGlobal residential real estate prices continue to rise but momentum is slowing Prices in Russia continue to fall but Australian house prices look set…
Can an Economy Advance Without Savings?
byAccording to Frank Decker, Honorary Associate at the University of Sydney Law School, it certainly can. Not only that, but eschewing savings in favor…
Can we ascertain the facts of reality in economics by means of mathematics?
byIt is generally held that by means of statistical and mathematical methods one can organize historical data into a useful body of information, which…
Homos Economicus: a Largely Irrational Animal
byOr ‘How Expected Utility Theory was Successfully Challenged by a Nobel Prize-winning Hypothesis’ By Jessica King 2002’s Nobel prize-winning economist Daniel Kahneman wrote…
A Brief (and Messy) History of Modern Gold Standards
byMarcia Christoff-Kurapovna Although gold prices hit a new high in mid-January, Americans, by and large, are still reluctant about gold. They don’t quite “get it.” This…
Why perfect competition is not so perfect
byAccording to the popular view, a proper competitive environment must emulate the perfect competition model. In the world of perfect competition, a market is…