Economics and Politics by Paul Krugman - The Conscience of a Liberal Economics For a topical guide to this subject, see Outline of economics. Economics is the social science that studies the behavior of individuals, households, and organizations (called economic actors, players, or agents), when they manage or use scarce resources, which have alternative uses, to achieve desired ends. Agents are assumed to act rationally, have multiple desirable ends in sight, limited resources to obtain these ends, a set of stable preferences, a definite overall guiding objective, and the capability of making a choice. There exists an economic problem, subject to study by economic science, when a decision (choice) has to be made by one or more resource-controlling players to attain the best possible outcome under bounded rational conditions. In other words, resource-controlling agents must maximize value subject to the constraints imposed by the information the agents have, their cognitive limitations, and the finite amount of time they have to make and execute a decision. J.
Paul Volcker Paul Adolph Volcker, Jr.[1] (born September 5, 1927) is an American economist. He was Chairman of the Federal Reserve under Presidents Jimmy Carter and Ronald Reagan from August 1979 to August 1987. He is widely credited with ending the high levels of inflation seen in the United States during the 1970s and early 1980s. He was the chairman of the Economic Recovery Advisory Board under President Barack Obama from February 2009[2] until January 2011.[3] Early life[edit] Volcker's undergraduate education was at Princeton University; he graduated in 1949. Career[edit] In 1952 he joined the staff of the Federal Reserve Bank of New York as a full-time economist. From 1969 to 1974, Volcker served as under-secretary of the Treasury for international monetary affairs. In 1975, Volcker also became a senior fellow in the Woodrow Wilson School of Public and International Affairs at Princeton University. Chairman of the Federal Reserve[edit] Debt to GDP ratio, 1981-1993 Debt to GDP ratio, 1993-2001
Rakesh Jhunjhunwala Rakesh Jhunjhunwala (born 5 July 1960) is an Indian investor and trader. He is a qualified Chartered accountant. He manages his own portfolio as a partner in his asset management firm, Rare Enterprises.[2][3] Jhunjhunwala was described by India Today magazine[which?] as the "pin-up boy of the current bull run"[4] and by Economic Times[which?] as "Pied Piper of Indian bourses".[5] Career[edit] Jhunjhunwala is the Chairman of Aptech Limited and Hungama Digital Media Entertainment Pvt. Jhunjhunwala's stocks fell by up to 30% in December 2011.[6] He recovered his losses in February 2012.[7] These ups and downs forced Rakesh to reduce his vulnerability by trimming his portfolio to one-third.[8] His attempts to divest his Aptech stake had no takers.[9] In May 2012 he increased his stake in Aptech by 2.24% now holds 12.7% Jhunjhunwala invested $ 4.6 Million (INR 26 crore) in A2Z Maintenance[10] increasing his stake in the company by 3.57%, taking his stake in the company to 23.2 per cent.
Joseph Stiglitz Joseph Eugene Stiglitz, ForMemRS, FBA (born February 9, 1943) is an American economist and a professor at Columbia University. He is a recipient of the Nobel Memorial Prize in Economic Sciences (2001) and the John Bates Clark Medal (1979). He is a former senior vice president and chief economist of the World Bank, and is a former member, and Chairman of the Council of Economic Advisers.[2][3] He is known for his critical view of the management of globalization, free-market economists (whom he calls "free market fundamentalists"), and some international institutions like the International Monetary Fund and the World Bank. Life and career[edit] Stiglitz was born in Gary, Indiana, to Jewish parents, Charlotte (née Fishman) and Nathaniel D. In addition to making numerous influential contributions to microeconomics, Stiglitz has played a number of policy roles. In 2011, he was named by Foreign Policy magazine on its list of top global thinkers.[27] Contributions to economics[edit]
Embargo An embargo (from the Spanish embargo, literally Distraint) is the partial or complete prohibition of commerce and trade with a particular country.[1] Embargoes are considered strong diplomatic measures imposed in an effort, by the imposing country, to elicit a given national-interest result from the country on which it is imposed. Embargoes are similar to economic sanctions and are generally considered legal barriers to trade, not to be confused with blockades, which are often considered to be acts of war.[2] In response to embargoes, an independent economy or autarky often develops in an area subjected to heavy embargo. Effectiveness of embargoes is thus in proportion to the extent and degree of international participation. Business[edit] Companies must be aware of embargoes that apply to the intended export destination.[3] Embargo check is difficult for both importers and exporters to follow. Examples[edit] The Embargo of 1807 was a series of laws passed by the U.S. See also[edit]
Collateralized debt obligation A collateralized debt obligation (CDO) is a type of structured asset-backed security (ABS).[1] Originally developed for the corporate debt markets, over time CDOs evolved to encompass the mortgage and mortgage-backed security ("MBS") markets.[2] Separate special purpose entities—rather than the parent investment bank—issue the CDOs and pay interest to investors. As CDOs developed, some sponsors repackaged tranches into yet another iteration, knows as "CDO-squared" or "CDOs of CDOs."[2] In the early 2000s, CDOs were generally diversified,[3] but by 2006–2007—when the CDO market grew to $100s of billions—this changed. Market history[edit] Beginnings[edit] Until about 2005, CDOs were diversified, and might consist of everything from aircraft lease-equipment debt, manufactured housing loans, to student loans and credit card debt. Explanations for growth[edit] Subprime mortgage boom[edit] IMF Diagram of CDO and RMBS Securitization markets were impaired during the crisis. Crash[edit] Criticism[edit]
10 Lesser Known Economic Issues Politics While not an economist in the traditional sense, I am very interested in the study of economics. While not everyone shares this level of interest, I believe people should have an understanding of economics as the field is so important to understanding the world that we live in. Also known as the Diamond-Water Paradox, the paradox of value is the contradiction that while water is more useful, in terms of survival, than diamonds, diamonds get a higher market price. This paradox can possibly be explained by the Subjective Theory of Value, which says that worth is based on the wants and needs of a society, as opposed to value being inherent to an object. Khazzoom–Brookes Postulate This proposal was named after economists Daniel Khazzoom and Leonard Brookes, who argued that increased energy efficiency, paradoxically, tends to lead to increased energy consumption. “Increased energy efficiency can increase energy consumption by three means. Economics has many categories for “goods”.
Adam Smith, Wealth of Nations, Contents Introduction Chapter 1. Of the Division of Stock Chapter 2. Of Money considered as a particular branch of the general Society, or of the Expense of maintaining the National Capital Chapter 3. Chapter 4. Chapter 5. Introduction Chapter 1. Chapter 2. Chapter 3. Part 1. PART 2. CHAPTER 4. CHAPTER 5. CHAPTER VI Of Treaties of Commerce CHAPTER VII Of Colonies PART 1 Of the Motives for establishing new Colonies PART 2 Causes of Prosperity of New Colonies PART 3 Of the Advantages which Europe has derived from the Discovery of America, and from that of a Passage to the East Indies by the Cape of Good Hope CHAPTER VIII Conclusion of the Mercantile System CHAPTER IX Of the Agricultural Systems, or of those Systems of Political Economy which represent the Produce of Land as either the sole or the principal Source of the Revenue and Wealth every Country