People living in groups(societies) and sharing resources(commons) could either act according to their self-interests or seek the common good. This idea was first discussed in a pamphlet published in 1883 by the British economist William Forster Lloyd. He described a phenomenon called “Tragedy Of The Commons” according to which when people have open access to … Continue reading Tragedy Of The Commons
Classical economic models assume that people are rational, predictable, and make the most optimal choices, but are we really so? Trying to answer this question, a new economic sub-field emerged and it’s called “behavioral economics”. It is an attempt to prove that there are psychological, social, and emotional factors that influence our decision-making. Behavioral … Continue reading What Is Behavioral Economics?
During the 17th century, thanks to the industrial revolution and the European expansion overseas, most European countries were witnessing an increase in agricultural production, technological innovation as well as a development in medical knowledge. All of these factors led to an acceleration in population growth. People were quite optimistic about the future, the conditions of … Continue reading Malthusian Economics | Malthusian theory.
You have, probably, already heard of economic inflation and deflation. And you know that the first one is characterized by a growing economic output, less unemployment and price levels going up. While deflation is the exact opposite. But what about a combination of both, sounds weird right? but yes, there is something called Stagflation ! … Continue reading What is stagflation?
Monetarism is a theory suggested by the American economist Milton Friedman (1912-2006) in the 60s of the last century, in “A Monetary History of the United States”, a book he co-wrote with Anna Schwartz. The theory was named so for its focus on money’s role in the economy. Monetarism is an economic doctrine according to … Continue reading Friedman’s monetarism theory.
The term liberalism is used to denote the intellectual and philosophical doctrine that calls for the spread of political and individual freedoms. The concept of freedom remains the central idea upon which liberalism is based, which makes some describe it as the doctrine of freedom.The term economic liberalism first appeared in England in the late … Continue reading Economic liberalism.
The issue of economic growth and development has always been one of the major concerns of humanity. It has aroused and still arouses the growing interest of researchers to find appropriate ways, policies and approaches, which allow human societies to converge towards an optimum of collective well-being. In 1960 The American economist Walt Whitman Rostow … Continue reading Stages of economic growth according to W. Rostow.
Mercantilism: an economic theory that dominated in the modernized parts of Europe from the 16th to the 18th century. This theory is mostly associated with colonialism and the exploitation of the colonies’ natural resources.Mercantilism is considered as the first trade system between nations. Mercantilism is centered around the idea that a country’s wealth is determined … Continue reading Mercantilism: the economic side of colonialism.
A theory introduced by the Scottish economist Adam Smith in his book “The Wealth Of Nations”.This theory was based on the idea that people who are seeking for their individual interests could actually benefit other people too, even if unintentionally .Smith suggested to leave self-interested traders compete with one another without the intervention of the … Continue reading The invisible hand theory.
Protectionism or free trade? Trying to find the best economic policy to enrich a country, these two theories have always been at the forefront. This debate continues to be thought-provoking till today. Protectionism: actions taken by the government to restrict imports by increasing taxes on goods and services bought from foreign countries.During the 15th century … Continue reading Protectionism or free trade ?