You are looking at all articles with the topic "Economics". We found 117 matches.

Hint: To view all topics, click here. Too see the most popular topics, click here instead.

🔗 Economics 🔗 Law

The Brussels effect is the process of unilateral regulatory globalisation caused by the European Union de facto (but not necessarily de jure) externalising its laws outside its borders through market mechanisms.

🔗 Finance & Investment 🔗 Economics 🔗 Business 🔗 Rock music 🔗 Business/Accounting

A celebrity bond is commercial debt security issued by a holder of fame-based intellectual property rights to receive money upfront from investors on behalf of the bond issuer and their celebrity clients in exchange for assigning investors the right to collect future royalty monies to the works covered by the intellectual property rights listed in the bond. Typically backed by music properties, the investment vehicle was pioneered in 1997 by rock and roll investment banker David Pullman through his $55 million David Bowie bond deal.

🔗 Economics

A job guarantee (JG) is an economic policy proposal aimed at providing a sustainable solution to the dual problems of inflation and unemployment. Its aim is to create full employment and price stability, by having the state promise to hire unemployed workers as an employer of last resort (ELR).

The economic policy stance currently dominant around the world uses unemployment as a policy tool to control inflation; when inflation rises, the government pursues contractionary fiscal or monetary policy, creating a buffer stock of unemployed people, reducing wage demands, and ultimately inflation. When inflationary expectations subside, expansionary policy aims to produce the opposite effect. In Marxian terms, the unemployed serve as a reserve army of labor. By contrast, in a job guarantee program, a buffer stock of employed people (employed in the job guarantee program) provides the same protection against inflation without the social costs of unemployment, hence potentially fulfilling the dual mandate of full employment and price stability.

🔗 Internet 🔗 Internet culture 🔗 Economics 🔗 Sociology

Enshittification, also known as platform decay, is a way to describe the pattern of decreasing quality of online platforms that act as two-sided markets. Enshittification can be seen as a form of rent-seeking. Examples of alleged enshittification have included Google Search, Amazon, Bandcamp, Facebook, Reddit, and Twitter.

🔗 Economics

The iron law of wages is a proposed law of economics that asserts that real wages always tend, in the long run, toward the minimum wage necessary to sustain the life of the worker. The theory was first named by Ferdinand Lassalle in the mid-nineteenth century. Karl Marx and Friedrich Engels attribute the doctrine to Lassalle (notably in Marx's 1875 Critique of the Gotha Program), the idea to Thomas Malthus's An Essay on the Principle of Population, and the terminology to Goethe's "great, eternal iron laws" in Das Göttliche.

It was coined in reference to the views of classical economists such as David Ricardo's Law of rent, and the competing population theory of Thomas Malthus. It held that the market price of labour would always, or almost always, tend toward the minimum required for the subsistence of the labourers, reducing as the working population increased and vice versa. Ricardo believed that happened only under particular conditions.

🔗 China 🔗 Economics

Tang ping (Chinese: 躺平; pinyin: tǎng píng; lit. 'lying flat') is a lifestyle choice and social protest movement in China by some young people who reject societal pressures on hard work or even overwork (such as the 996 working hour system, which is generally regarded as a rat race with ever diminishing returns), and instead choose to "lie down flat and get over the beatings" via a low-desire, more indifferent attitude towards life. Novelist Liao Zenghu described "lying flat" as a resistance movement, and The New York Times called it part of a nascent Chinese counterculture. It has also been compared to the Great Resignation that began in America (and the western world) around the same time.

Unlike the hikikomori in Japan (who are socially withdrawn), these young Chinese people who subscribe to "lying flat" are not socially isolated, but merely choose to lower their professional and economic ambitions and simplify their goals, still being fiscally productive for their own essential needs, and prioritize psychological health over economic materialism.

🔗 Economics

In finance, the rule of 72, the rule of 70 and the rule of 69.3 are methods for estimating an investment's doubling time. The rule number (e.g., 72) is divided by the interest percentage per period (usually years) to obtain the approximate number of periods required for doubling. Although scientific calculators and spreadsheet programs have functions to find the accurate doubling time, the rules are useful for mental calculations and when only a basic calculator is available.

These rules apply to exponential growth and are therefore used for compound interest as opposed to simple interest calculations. They can also be used for decay to obtain a halving time. The choice of number is mostly a matter of preference: 69 is more accurate for continuous compounding, while 72 works well in common interest situations and is more easily divisible. There is a number of variations to the rules that improve accuracy. For periodic compounding, the exact doubling time for an interest rate of r percent per period is

${\displaystyle t={\frac {\ln(2)}{\ln(1+r/100)}}\approx {\frac {72}{r}}}$,

where t is the number of periods required. The formula above can be used for more than calculating the doubling time. If one wants to know the tripling time, for example, replace the constant 2 in the numerator with 3. As another example, if one wants to know the number of periods it takes for the initial value to rise by 50%, replace the constant 2 with 1.5.

🔗 Finance & Investment 🔗 Economics 🔗 Business

The Hindenburg Omen was a proposed technical analysis pattern, named after the Hindenburg disaster of May 6, 1937. It was created by Jim Miekka, who believed that it portended a stock market crash.

🔗 Economics 🔗 Business 🔗 Sociology 🔗 Occupations

This is a category of jobs that have been rendered obsolete due to advances in technology and/or social conditions.

🔗 United States/U.S. Government 🔗 United States 🔗 Finance & Investment 🔗 Economics 🔗 Numismatics

The everything bubble refers to the correlated impact of monetary easing by the Federal Reserve (and followed by the ECB and the BOJ), on asset prices in most asset classes, namely equities, housing, bonds, many commodities, and even exotic assets such as cryptocurrencies and SPACs. The term is related to the Fed put, being the tools of direct and indirect quantative easing that the Fed used to execute the monetary easing, and to modern monetary theory, which advocates use of such tools, even in non-crisis periods, to create economic growth through asset price inflation. The term first came in use during the chair of Janet Yellen, but it is most associated with the subsequent chair of Jerome Powell, and the 2020–2021 period of the coronavirus pandemic.

The everything bubble was not only notable for the simultaneous extremes in valuations recorded in a wide range of asset classes and the high level of speculation in the market, but also that this was achieved in a period of recession, high unemployment, trade wars, and political turmoil – leading to a realization that it was uniquely a central bank creation, with concerns on the independence and integrity of market pricing, and on the Fed's impact on wealth inequality.

Bloomberg attributed Powell's maintenance of monetary stimulus into 2021 (the final year of his first term as Fed chair), in spite of warnings of unprecedented levels of market risk and speculation, to his fear of repeating the crash in Q4 2018 when he started quantitative tightening; thus extending the bubble.

High up on his [President Biden] list, and sooner rather than later, will be dealing with the consequences of the biggest financial bubble in U.S. history. Why the biggest? Because it encompasses not just stocks but pretty much every other financial asset too. And for that, you may thank the Federal Reserve.