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Your Wikipedia article links to its source, where you can read (quote below Google translated from Russian) Strengthening the national currency. Due to denomination, the exchange rate of the national …

TLDR I too dislike washing the dishes and support a central planning committee Some trade-offs are really sensible and one will make the choice regardless of their presence. E.g. most people have so …

Game theory, as suggested by the name, is not applied. Fixed point theorems, measure theory and other abstract areas abound. A lot of very succesful game theorists have math PhDs. A lot of people will …

UPDATE: Renowned socialist news site Bloomberg.com ran an opinion piece on this calling out Yellen: Yellen Junks 200 Years of Economics to Block China Clean Tech There is also this claim in the articl …

The common usage is probably $\displaystyle \max_{K,L} [F(K,AL) - wL - rK]$ $wL$ $w = \frac{\partial F(K,AL)}{\partial L}$ BUT you could get the other answers just by redefining the unit of measu …

economy-wide imports relative to total demand Say the US economy uses 1 billion USD worth of engine parts a year (total demand), 200 million USD worth of which are imported (economy-wide imports). S …

A unique fixed point may not be stable. For an example, check the dynamic system $$ x_{t+1} = 2x_t, $$ where the unique fixed point is $x^* = 0$, but this is not stable, in fact, starting from any poi …

I thought someone would have written up the answer in the meantime: China currently caps total foreign ownership in locally listed firms at 30%, and subjects a single foreign shareholder to a 10% lim …

The mechanism is positive expected value trading. You take a loan in the currency with the lower interest rate (adjusted for expected exchange rate change) convert it to the currency with the higher i …

$$ \begin{eqnarray} \frac{\delta \cdot k_t}{s \cdot A \cdot k_t^\alpha} & = & \left(\frac{P_e}{\gamma \cdot A \cdot k_t^\alpha}\right)^{\frac{\gamma}{\gamma-1}} \\ \frac{\delta}{s \cdot A} \cdot k_t …

It has been made clear in the comments that "economic growth leads to one's currency becoming more valuable" this means the exchange rate improves. While one could argue that ceteris paribus economic …

The answer: it is an assumption Solow-models usually assume that $f$ fulfills the Inada conditions, points 3. and 4. of which state $$ \begin{equation*} \lim_{k \to 0} f'(k) = \infty \\ \lim_{k \to \ …

A real asset has some physical characteristics that determine what real output it will produce. E.g.; an orchard produces apples, a construction company creates buildings, etc. Say my real asset has p …

A well-received comment on this site stated: Pundits might not understand inflation but macroeconomists actually understand inflation well nowadays What models are currently used to forecast inflati …

I was told (correctly) that the ability to forecast something is not the same as understanding it. I was also told that inflation is pretty well understood by macroeconomists nowadays. How do macroeco …