Category: Macroeconomics

Interest rates

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Put simply, interest rate is the fee you have to pay to borrow money. It is the cost of using the money which is not yours.

The Gresham’s Law: Bad money vs. Good money

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According to the Gresham’s Law, if both the good and bad money are used in an economy, and since the people are aware of the real value of good money, they will try to keep as much good money as they can to themselves, and spend the bad money instead.

Classical Economics: Praising the free market

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Classical Economics, highly regarded as the first school of economic thought, experienced its heyday during the 18th and 19th centuries. Numerous economists of the time such as Adam Smith, Irving Fisher, John Stuart Mills and David Ricardo have contributed to classical economics.

Purchasing Power Parity; hey look, a balance

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  Our willingness to pay a certain price for foreign money must ultimately and essentially be due to the fact that this money possesses a purchasing power as against commodities and services…

Khazzoom-Brookes Postulate: the debate goes on

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There is no consensus about the relationship between energy efficiency and energy use and the topic is still highly contested. Some argue that energy efficiency improvements might increase the consumption of energy….