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”

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”

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”

Who is The Economic Man?

As you may have noticed, the title of this website is “The Economic Man”, and its purpose is to help everyone become the best version of themselves through life advice and economic knowledge. That way, we all can become Economic Men and Women. But, what should you expect? What does it mean to be an Economic Man? Continue reading “Who is The Economic Man?”