The Macroeconomics Series (IV): Is unemployment really unavoidable?

Welcome back to the Macroeconomics Series! In this article, we are going to take a look at the last “big” concept that economists work with when handling macro: unemployment. We’ve talked about inflation and GDP, but the labour market is definitely closer to us (individuals) than the other two concepts, which I’m sure will make things easier to understand. After reading this article, you should be able to put together all the information available in previous entries and understand why things happen. Continue reading “The Macroeconomics Series (IV): Is unemployment really unavoidable?”

The Macroeconomics series (III): Inflation can be a friendly monster

In our last article, we talked about inflation, economic growth and how output changes over time. We finished the article by saying that “inflation is not a bad thing in itself”; it is now time to explain why inflation can be good for the economy. This won’t take long, so let’s get started! Continue reading “The Macroeconomics series (III): Inflation can be a friendly monster”

Great Expectations – A tale of Economics and self-improvement

Expectations are one of the most important factors in modern macroeconomics. When central banks make decisions like increasing the interest rate or starting a QE program, those changes do have an impact on the economy, but the effects of those decisions trigger a lot of expectations. Economic agents have to work with the current indicators and their expectations for the future… And so should you! Continue reading “Great Expectations – A tale of Economics and self-improvement”

The Macroeconomics Series (II): Inflation and growth

Our first article in this series on macroeconomics covered GDP (Gross Domestic Product). We made a distinction between nominal GDP and real GDP based on the effects of increasing or decreasing prices. Today, we are going to expand on that topic: this article will introduce you to inflation and growth. Continue reading “The Macroeconomics Series (II): Inflation and growth”

The Macroeconomics Series (I): Real GDP matters

Big figures sound scary. Our governments spend billions of euros/dollars/you name it every year in lots of different things. You might even know a few things about GDP, deficit and a vast array of terms related to economics in general. In this series, my aim is to make it easier for everyone to get a grasp of macroeconomics. So, fasten your seat belts and get ready to learn! Continue reading “The Macroeconomics Series (I): Real GDP matters”

Creative Destruction within yourself: an Economic approach to mental breakdowns

Every economist knows (or should know ಠ_ಠ) the meaning of these two words: creative destruction, a very interesting concept first coined by Joseph Schumpeter back in 1942. “Creative destruction” describes the way all the processes and old methods of production “get dismantled” and replaced with newer, more efficient ones. Back in Schumpeter’s days, it was quite easy to notice progress and there was a lot of room for improvement in many fields (sure, we still have so much to learn, but we’ve come a long way since then!). Continue reading “Creative Destruction within yourself: an Economic approach to mental breakdowns”

Data Science and COVID-19: predicting the spread! (using R)

No one is safe from the dreaded COVID-19 nowadays. We did not want to write about it, but there is so much to analyse, predict and share that we are going to bring the website back to life to provide you with the latest trends, forecasts and data analyses, hoping that this pandemic will come to an end soon. Continue reading “Data Science and COVID-19: predicting the spread! (using R)”

Behavioral economics was right: The Sunk Cost Fallacy

Behavioral economics is the branch of economics that studies the effects of our emotions, cultural influences and many other things ultimately related to our psyche on the economics decisions we make. Remember the (neo)classics: we are perfectly rational and, as such, act according to strict cost-benefit comparisons. Behavioral economics, on the other hand, says “screw that!” and dives deeper into the human behavior (duh) in order to gain better understanding of our choices. Continue reading “Behavioral economics was right: The Sunk Cost Fallacy”

Understanding Risk for better decision making: creating our own Sharpe Ratios

Decisions are something we have to be aware of and make every single day of our lives. Whether they are small, seemingly unimportant decisions like brushing our teeth or going to bed early, or big ones like choosing a major or declining a job offer, our decisions shape our future and our personality. With every decision comes an outcome… and a share of risk that we need to take into account before making a move. And yes, we all have trouble making big decisions and wish we could understand the situation better… that’s why we’re here today! Continue reading “Understanding Risk for better decision making: creating our own Sharpe Ratios”

The Pareto Principle – why you shouldn’t focus on everything

I am sure you have heard the words “Pareto Principle” or “80/20 rule” at least once in your life. They are everywhere: productivity, business, how-to-do-more-this-year-100%-real videos… But do you really know what the Pareto Principle is and how it affects your life? What’s more, do you know how to take advantage of this great economic observation in your decisions? Continue reading “The Pareto Principle – why you shouldn’t focus on everything”