Readers Question: Why do most people prefer inflation to deflation? is it because such guys are business owners and they don’t to earn a little or what ? what about poor people. how can they make ends meet? think properly, think widely, think about the poor first. then I am sure, you are going to …
Insurance is a means of protecting the loss or costs caused by an event that may or may not happen. Insurance coverage is by a contract in which one party, the insurer, agrees to indemnify or reimburse another, the insured, for loss that occurs under the terms of the contract. In exchange for payments from …
Readers Question: Does it (financial crisis) have any possible positive effects for the future? It is an opportunity to repair a broken financial system and put in safeguards to prevent future boom and busts. For example, we could have policies which banks automatically hold more deposits during a boom to provide counter cyclical instruments. Better …
Some people or businesses are reluctant to switch banks because they think the process could be time-consuming and risk loosing information. It is easy to stay with the bank you first chose through inertia when but switching your account could help you get a better deal. The Banking Conduct of Business Sourcebook (BCOBS) which replaced …
As the old saying goes there are two certainties in life – death and taxation. So why not combine the two and raise revenue from inherited wealth? I have written on this topic before Why are we reluctant to tax Wealth? But, I would like to make another case for why a ‘death’ tax meets …
To many people’s surprise, UK house prices have risen quite strongly in the past 12 months. If we look at the experience of Japan, United States, Ireland or Spain, it seems the experience of Britain is unusual. Countries like Japan and the US had a boom and bust in house prices, similar to the UK. …
Readers Question: If I have to get economic master degree, what kind of job İ will apply in real life. Can you give me list of economic job? The most common questions I get asked by students is either? Why didn’t you get a better paid job in the city? What Job can I get …
A few people have asked why don’t government’s just default and not pay their debt back? Firstly, a government could effectively default just by printing money, creating inflation and making it easier to pay debt back. But, if the government does create inflation (print money) to pay off its debt or simply refuses to pay, …