economics

The same thing occurred in the 2000s, when an oil shock in 2008 that made prices surge incentivized oil companies to innovate on drilling techniques, which brought American oil production to record highs. Would the innovation boom have occurred without the previous crisis?

With Chinese funding of European debt, Europe, ironically, would find itself enjoying part of the supposed benefits of exorbitant privilege. It would discover however that while more foreign funding sounds like a good thing, it is the same as larger current account deficits, which most certainly are not a good thing for countries struggling with

Overall, these trends suggest a very significant shift in the credit landscape. Credit seems to be moving from the supply side (businesses) to the demand side (consumers) of the economy. Considering the state of economic development of India and the relatively low level of per capita GDP, this move appears to be premature. Even within consumer

On our calculations, as much as three- quarters of primary transactions now consist of debt roll-overs rather than new capital raising. These refinancings require liquidity in the form of balance sheet capacity within the financial sector. In addition, liquidity itself needs good-quality debts, like US Treasury bonds, to back it. According to the

It should never be forgotten that, in its most basic form, investing is always and everywhere about price and value.

The bond market has historically been known as “smart money”, in contrast to equity markets that are more of a mix of smart money and so-called dumb money.

This is because the bond market is generally characterized by professional investors and traders, whereas the equity market is a mix of all sorts of different investors and traders, including

Xi has made it clear that his top priority is to transform China into a self-reliant global superpower. He aims to be the leader who definitively leaves China’s “century of humiliation”—a reference to the long era of China’s perceived subservience to Western powers—behind. In this context, the government’s current GDP growth target of around five

While economists were looking at inflation in medical costs and college tuition, American companies were being bled by deflation in manufactured goods.

The flow economy is dynamic; you can think of GDP accounts as the economy’s Profit and Loss (P&L) statement. It measures what we are doing, using metrics expressed in dollars per year like consumption, savings, investment, government spending, taxes, net exports, and GDP. Things expressed per unit of time measure speed, like miles per hour on your