Can there be not enough money, to prevent it to… be money at all? Can the amount of money be constant? How would non-inflationary money function? Can there be not enough money? 1. Can there be not enough money? Anyone who has felt dissatisfied after checking the contents of their wallet or bank account, may find this question a grim joke. “Of course” – the person will answer – “there can be not enough money”! After all, most of us at different times in our lives had fewer money than we wanted or needed. It is more difficult to answer a more precise question: can there be not enough money ..read more

Which counties have the highest GDP per capita in the world? What are the causes of this wealth? Introduction GDP per capita is commonly used as a measure of welfare. In 2021, the countries with the highest GDP per capita were: Luxembourg, Ireland and Switzerland. However, it should be remembered that GDP per capita does not show the actual distribution of generated income (it is calculated for the average citizen of a given country). The standard of living is influenced by far more factors than the production volume itself and the rate of its increase. With this in mind, in today’s epis ..read more

What is the nirvana fallacy? What the nirvana fallacy has to do with economics? Is “better” an enemy of the “good”? Introduction – what is the nirvana fallacy? How often do we compare the current state of affairs to our vision of an ideal world? What do we do when we only have non-ideal solutions on the table that can solve some problems but do not solve everything? Are the critics of these solutions rightly not satisfied with half-measures, demanding absolutely perfect solutions, or do they commit the so-called nirvana fallacy? First, let’s discuss what the nirvana fallacy is. The creat ..read more

What is the middle income trap and what is it about? What is responsible for the phenomena referred to as this? In which countries has this phenomenon been observed? Does the concept conflict with reality? What is the middle income trap, and what characterizes it? The rapid growth in popularity of the term “the middle-income trap” came after it was introduced into discussion in 2007 by two World Bank economists, Indermit Gill and Homi Kharas. The authors tried to explain why some Asian countries stop developing at some point.1 Thus, they encouraged a debate on the desired economic change ..read more

We’re discussing the myth of the benefits of war, which goes something like this: “Doesn’t war, death and destruction have positive consequences for the economy? Just look at how many people have jobs due to rebuilding ruined cities and infrastructure”. Introduction. The myth of post-war prosperity as a variation on the myth of broken window “War… War never changes” – announces the voice of Ron Perlman in the prologue of the next parts of the classic series of Fallout computer games. Each game reveals a post-apocalyptic world ravaged by nuclear conflict, where decimated humanity leads a ..read more

What is the resource curse? What are the causes of the resource curse? What are the consequences? What is dutch disease? Other names: the rent curse, the paradox of plenty. Introduction Natural resources, especially strategic fuel and mineral resources, are crucial in economic development. They are used both in the production of advanced technology, and everyday consumer goods. It may seem that countries with rich resource deposits should have great economic success, and yet they often have to deal with the paradoxical phenomenon called the resource curse. What is the resource curse ..read more

What are 3 poorest countries in the world? What causes poverty? What happens with the help for them? Somalia One of the poorest countries in the world in terms of GDP per capita is Somalia. GDP per capita in Somalia is only $127.1 In 2020 the unemployment rate in Somalia was about 13,1%2, and the inflation rate in 2022 was 6,84%3. Over 60% of the population in Somalia are illiterate.4 The most important sector of the economy there is agriculture. Agriculture with forestry sum up to over 60% of the GDP. The main cultivated plants are banana trees, sugar canes and cotton plants. Somalia ha ..read more

Russian Sanctions Overview. What sanctions did the west imposed on Russia? What are the costs for Russia? Quick remainder – what are sanctions? Sanctions are a form of punishment for breaking given rule or norm, a way to prevent from a country from breaking a rule or norm or a way to prevent the sanctioned country from profiting from their actions.1 As we’ve explained in our video on sanction’s effectiveness, economic sanctions are the restrictions imposed on one country by the other country or countries. Sanctions can take the form of tariffs (fees for trading), embargos (a ban on trade ..read more

Are sanctions as effective as WAR? What are economic sanctions, who imposes them and why? What are the types of economic sanctions? What are the biggest modern sanctions programs in the world? (before the Russia-Ukraine war). Are sanctions effective? History First mentions about economic sanctions come from the year 432 BCE, when Pericles – athenian politician and reformer of athenian democracy – issued a Megarian decree, which cut off Megarian merchants from harbors and markets in Athens and in the whole Maritime Union area.1 The reasons for cutting of Megara from trade (mainly grain su ..read more

Why do we need law certainty? Do we have law certainty? What were the Greek problems with legislation? How did Roman and English legal systems looked like? Why do we need law certainty? Certainty of law is an important factor in long-term economic development. Excessive legislation and regulation brings uncertainty to the businesses and investors. One day your business is fine, the next day it may be forbidden, over-regulated, taxed, and so on. Stable law lowers uncertainty, allows to make long-term plans, thus encouraging investments. Increased investments lead to more effective product ..read more