This article discusses the recent turmoil in the US financial markets, the Fed’s response to inflation, the Production Function, and the Solow Model. This piece uses ChatGPT to explain the concept of Steady State. Additionally, it takes an interesting look at both the pros and cons of artificial intelligence, with a peek at behavioral finance guru Hyman Minsky. The recent
“The war in Ukraine, lockdowns in China, supply-chain disruptions, and the risk of stagflation are hammering growth. For many countries, recession will be hard to avoid,” said World Bank President David Malpass. Honey I blew up the Inflation The recent surge in global inflation is reminiscent of the Hollywood sci-fi hit Honey I blew up the Kids. Putting aside the
“A market where there are large number of rational, profit maximisers actively competing, with each other trying to predict future market values of individuals securities and where important current information is almost available to all participants” Eugene Fama on Efficient Markets The theory of random walk led to the efficient market hypothesis. Eugene Fama, the father of modern mathematical finance,
Originally posted as part of the Stabilization Macroeconomics series, the academic focussed publication sets the tone for the upcoming Macroeconomic Online Course on Stabilization. The series focuses more on the role of the Central Banks in driving monetary, fiscal, and macroeconomic policies of the government. The course begins with a look at Central Banks as enablers, its monetary focus on
Understanding Gross Domestic Product (GDP) is fundamental to understanding macroeconomic enablers for sustainable growth. GDP is a universal term, yet people do not entirely understand its significance. Awareness of macroeconomics drives a nuanced meaning of the bigger picture. How will you understand the effect of different policies if you do not understand the economics behind the economy? Healthcare: To understand
Graph: U.S Bureau of Labor Statistics We look at the Impact of the COVID-19 pandemic on prices for petroleum products as the price of jet fuel is closely linked to global crude oil prices. The pandemic induced a jolt to the world economy and the OPEC Russian oil war jacked down the global crude oil prices. In 2016 China became the largest importer
Isn’t it Ironic? Taylors Rule & FED Rates — Macroeconomics Alanis Morissette’s epic number might be the best song to hear when you decipher Federal Reserve chair Jerome Powell’s recent announcement of FED’s intention to keep interest rates status quo until 2024. The Federal Reserve’s recent announcement that it will not raise federal funds rate until 2024, marking the rate
Minimum Wage – Policy Analysis The following is an excerpt from the upcoming publication under Macroeconomics. The research-focused report written with a storyline discusses the intersection of policies, economics, finance, science, technology, art & culture. This is a signature presentation from The middle Road. The Biden administration’s well-thought-out current policy to increase the minimum wage to $15 per hour. Minimum wage
Sanna Marin, PM of Finland and the world’s youngest Prime Minister, suggested a new rule of six hours per day, a four-day working plan that could have some concerns. To begin, congratulations to Sanna for her marvellous achievement. First, reduced working hours might bring down the productivity of the country. Second, wages move in tandem with productivity, and productivity, in turn,
