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”