You are welcome to ask any questions on Economics. Though you might also like to try google custom search (top right) to see if the topic has been covered before.
I am looking to explain economic principles / ideas/ recent developments in economics. I can’t promise to answer, but will try if it meets the criteria below.
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- I aim to try and simplify economics; as a rough guide I would aim at an understanding similar to a good British A Level student.
- I am looking to explain economic principles / ideas/ recent developments in economics.
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About The Author
What are the advantages and disadvantages of using price elasticity and the slope of demand curve in measuring the responsiveness of quantity demanded of a commodity?
what are the streangth and weaknesses of the modernizatio theories?
Regarding Price Discrimination in flights w.r.t time. It is reasonable to charge higher flight prices to customers who book flights later in time. But what about slashing flight prices after charging higher prices to customers booked earlier in time ?
Is it justified for the airlines to slash prices and make their customers look foolish?
Hi,
I am master student in economics and i would like to ask you something about sterilization.
Let we suppose that we have a simply IS LM BP diagramm under fixed exchange rate. The economy is in equilibrium. Let we now suppose that there is a monetary expansion which shifts LM to the right. In that point there is deficit in BP and pressures for depriciation of the currency. So, the central bank reduces the money supply in order to alleviate the pressures for depreciation. This is the case of non-sterilization.
My books says about the case of sterilization : ” However if the authorities pursue a policy of sterilization of reserve changes, the reserve falls which reduce the money supply are exactly offset by a further expansion of the money supply so that LM schedule remains at the same point.”
My question is : Why the central bank increases and decreases the money supply at the same time and quantity? i mean, for instance, if it increases the money supply by 100$ and at the same time reduces it by 100$, what is the point? There is no any sense to increase and decrease at the same time and value the quantity of money.
Thank you
I do this for the common good
http://patrick.net/forum/?p=1230886
It gets substantially ignored … How can I do better?
Hi there. Struggling with this scenario concerning income distribution and measures of inequality: If middle class portion of the income distribution increases (for example moving from an agrarian economy of peasants and landholders to an urbanizing service/industrial economy), does the overall level income inequality go down? Or do the gains of the middle classes vis-a-vis the peasants actually generate greater inequality?