Game theory is a framework for explaining social situations and interactions among competing players. It basically involves simulating the strategic interaction between two or more players in a system with predetermined rules and results. In some ways, autonomous and competing actors in a strategic context view the theory as the science of strategy and optimal decision-making. With the use of game theory, you can treat trading like a game with a 50/50 probability of success or failure generically and completely disregard your entry signals. Here's why: Since the market can essentially go up or ..read more

The case for and against the minimum wage is unanimously one of the greatest and most conflicting arguments between the numerous schools of thought since its first introduction mid-way through the 20th century in the USA. Such arguments for the minimum wage have proclaimed that “The minimum wage is a vital and core economic policy to ensure workers are fairly compensated and not exploited,” whilst those against the minimum wage have stated, “The minimum wage is a counterproductive and ineffective tool to raise worker compensation.” Both arguments wish the best for the labour force's lowest ear ..read more

After the dismissal of Nikita Khrushchev in 1964, it was clear that there were severe problems in the Soviet economy that needed addressing. Reformers in the Politburo argued for changes to increase productivity and stimulate innovation, but conservatives rejected these calls and preferred to continue using the methods of the command economy established by Stalin. In spite of this, there were still further attempts at reform under the leadership of Leonid Brezhnev, the man who replaced Khrushchev, and then under Yuri Andropov between 1982 and 1984. The fact that the economy stagnated despite m ..read more

Digitalisation: we all know the story – the invention of the ‘World Wide Web’ (WWW) in 1991 facilitated one of the most extensive revolutions of the global economy since the Industrial Revolution. Before this, most business used to be either in-person or via an alternative communication medium. The internet optimised this – now almost everything (even this article) is online. This incredible remoulding has created, destroyed, and revised entire industries. The home entertainment industry is going through a major transformation, from the rise of subscription TV to the development of online vide ..read more

Climate change is finally being widely accepted by countries across the world, from China to the US, as something that will threaten the existence of humanity as we know it. The signs are, that many countries are willing to take steps to get to net zero in the medium to long term, as seen by pledges made during the current COP summit in Glasgow. However, is it really possible for developing nations such as India, who have huge populations, to become as developed and industrialised as countries such as the USA or the UK, without emissions rising dramatically? Are steps taken by Western countrie ..read more

Climate Change, this issue has been reigning supreme for a long time and with the upcoming Conference of the Parties 26 also known as COP26 UN Climate Change Conference in a few days we ought to understand the economic impact of climate change. Climate change refers to the long-term shifts in temperatures and weather patterns and has a major economic impact. It is estimated climate change could cause the global economy to lose $23 trillion,10 percent of its value by 2050, according to a survey released by a global reinsurance company Climate change leads to higher temperatures. This economic i ..read more

As the situation regarding a potential Russian invasion of Ukraine continues to escalate, it is not just the threat of Russian troops massed on the border that the West should be wary of. In the event of an imposition of severe economic sanctions on Russia, it is feared that the Kremlin will respond by ‘weaponising’ its natural resources in the form of restricting gas supplies to Europe. This would present a major problem to many European countries and could have untold humanitarian consequences for further-flung states that are heavily reliant on Russian natural gas and are not even involved ..read more

When people think of measures of recording the success of an economy, GDP (Gross Domestic Product) is what normally comes to mind. More specifically, real GDP per capita (defined as “the total value of final goods and services produced in an economy in one financial year, adjusted for inflation and population”) is commonly used to quantify how productive (and therefore successful) a country’s economy has been each year. However, many people believe that GDP is not the most reliable and accurate measure of an economy’s success. So, how accurate is GDP? Are there any measures that may be conside ..read more

As with many new fans of F1, I discovered my passion for the sport by watching the series that everyone involved in the sport absolutely hates - Drive to Survive. While the racing and the drama was enthralling, it was impossible to ignore the massive banners across the racetracks and the cars littered with sponsors from their tires to engine covers to front wings. F1 had estimated revenues of over $1.3 billion in 2021 and this led me to wonder, what is the scale of marketing, advertising and manufacturing in F1? F1 teams make a substantial amount of money from sponsorship deals. Predictably, t ..read more

A few days ago, the Bank of England raised the base interest rate from 0.1% to 0.25%, a 150% increase. This is seen as a response to rising inflation caused by various factors including supply chain issues. However, with the arrival of the Omicron variant, many have wondered whether it is wise to raise interest rates now with consumer confidence poised to fall. Figure 1-The Monthly Inflation Rate: 2020-2021. Source: ONS As seen above in the graph above, inflation has risen quite rapidly over the past few months for reasons such as supply shortages and increases in demand causing an upward pre ..read more