# All Questions

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54 views

### How can you model/simulate the price/value of a good?

Let's say that you have a good which price can change quite often because of its demand. Let's assume that you developed an algorithm that changes continuously the supply of the good to make its value ...
60 views

### Does Shadow Banking (i.e. non-Commercial Banking) produce transaction-useful money?

In shadow banking amongst primary dealers & large institutions...I understand repurchase agreements function similar to deposit accounts (Gorton, et al). Additionally, I understand how traditional ...
6 views

### Is there a clear timeline of ECB/Eurosystem's changes to the defintion of M3 (with regard to repos)?

I found that circa 2012 the ECB/Eurosystem changed their definition of M3 to exclude at least some repos, which previously were included. According to a 2014 Bundesbank publication, the change ...
88 views

### Political theories of inflation

A recent op-ed (paywall) in the Financial Times about inflation stated that (emphasis mine): Across the developed economies, the Phillips curve has gone ignominiously flat. The world's leading ...
254 views

### Wealth - Bond Market and Liquidity Preference Framework

I've been told that an increase in wealth will lead to an increase in both the demand for Bonds determined by the Theory of Asset Demand. This should shift the bond curve to the right, increasing ...
31 views

### Why does Samuelson say common stocks are better than bonds and preferred stocks during inflation?

I’m reading the first edition of Paul Samuelson’s Economics (1948). In Chapter 6, “Business Organization and Income,” after describing bonds, preferred stocks, and common stocks, he writes: To test ...
7 views

### Bank of Canada operating band

I read the following quote about the Bank of Canada's "operating band" for inducing target overnight loan rates: ...
13 views

### How to describe a utility function in words?

Suppose I have a utility function of Cobb-Douglas form. U(x, y) =x^0.2*y^0.8 I want to describe it in words. I would say like: The utility of consumer is captured by #of good x and #of good y. The ...
14 views

### causal time series analysis economics

I want to analyse the relationship between the level of globalization,and the level of income inequality between two specific countries. however, I'm quite lost as to which method is good to use (in ...
36 views

### ECB: limits of quantitative easing and rates cut?

Context: In recent history (edit: i.e. post-WWII), the Covid19 crisis is unprecedented. A significant portion of the world population is under lock down and almost all industries will be affected one ...
13 views

### Which one of these sources best represents fiscal deficit data?

I'm currently recollecting data for an econometrics model I want to build later on with a panel data model. However, sometimes it is difficult to find certain information. For example, I want to ...
22 views

### Measuring productivity with the Törnqvist index

I have a sample of companies, of which I want to calculate the productivity of each individual firm relative to a hypothetical firm in the industry. Choosing the measurement method was not easy, but ...
73 views

### Creation of Money - Hypothetical Situation

Imagine you sell me some consulting services. I don't have any cash, so I give you a $100 IOU instead. You now have a$100 Note Receivable on your Balance Sheet. ...
450 views

### The Economics of Coronavirus

People are concerned about the economic impacts of the virus. How severe will the economic downturn be? Will the coronavirus cause a global recession worse than the 2008 crisis? I'm not looking here ...
48 views

### Is there an “ideal” ratio of tax revenue to GDP? Or, at least, can I assume a higher ratio is better?

At the link below, you can see countries have a huge difference in ratios of tax revenue to GDP. Is it fair to assume that a higher ratio is better? Does raising a substantial portion of your GDP in ...
11 views

### How does the state of the stock market impact unemployment rate and gold prices? [closed]

Why does the well being of the stock market impact unemployment rate and gold prices? Thank you
46 views

### Math based proof for currency changes (microeconomics)

This isn't part of my homework but I am genuinely interested in the mathematical proof behind this question (this is my line of work currently). I tried to work through it but after 2 hours gave up. ...
34 views

### Is there still allocative efficiency when a subsidy is placed on a good?

An answer schedule for a practice exam I am doing states that when a subsidy is placed on a a good by the government, there is a loss of allocative efficiency. I have also learnt from this video that ...
39 views

### Question Regarding Equilibrium Price & Surplus

So here's an example of a standard Supply & Demand Relationship for an Individual Supplier: As a supplier, for 1 dollar, I'll produce 1 unit of something. For 2 dollars, I'll produce 2 units, for ...
80 views

### Solving Euler Equation for standard DSGE Models

I am studying a rather standard DSGE Model with a standard Utility function $U = f(c_t, n_t, M_t)$ subject to a budget constraint. Now, tosolve the intertemporal optimization problem I have, or ...
16 views

### Difference between Luxury/Premium/Value fashion segments? What does “value” mean here?

I was reading this article on Quartz: https://qz.com/1485141/just-20-fashion-companies-are-making-almost-all-of-the-industrys-profits/ I do not understand the following graph shown: What does "value"...
42 views

### Is fiat currency better than a backed-currency?

My question is would it be better if we went back to something like a gold standard but backed by a finite virtual material instead? It avoids the problem of fluctuations in gold supply. The money-...
49 views

### Does comparative advantage sustain over long periods of time?

Let's say that given the same resources, company A can produce 40 pens or 50 pencils, company B can produce 30 pens or 30 pencils. Since A has a comparative advantage in pencils, A decides to ...
65 views

### What will happen to a poor country’s economy if it replaces its entire banking system with the Islamic banking system?

I don't know much about economics. So, I am just curious about the Islamic banking system. What I understand is: I know that the USA is the dominant economy and the USD is the dominant currency in ...
25 views

### URGENT Lagrangian Multiplier for Microeconomics [closed]

How do I derive Lagrangian formula for L= U(C) + λ(P1C1 + P2C2 - m) where U(C) = C1 + C2, and the constraint is P1C1 + P2C2 = m I get stucked because U'(C1) and U'(C2) are both 1 What a great way ...
47 views

### Convert USD2005 PPP per-capita GDP to USD2011 PPP per-capita GDP for a number of countries

Which conversion factor / formula should be used to convert USD2005 PPP per-capita GDP to USD2011 PPP per-capita GDP for different countries? I have found an identical question, but without a clear, ...
61 views

### Where is the money that was in the economy pre-lockdown? [closed]

Countries are in lockdown, companies have no customers and thus no money, have to lay off staff which in turn means ex-staff have no money and cannot buy goods and services. Where is the money that ...
17 views