India’s budget and FDI: the vehicle on the road to investment-led growth

India’s budget and FDI: the vehicle on the road to investment-led growth

The Indian Finance Minister, Arun Jaitley, recently revealed India’s new budget. It is intended to be the Government’s strategy to build a stronger economy and secure Indian’s future. Modi, the new Prime Minister, is confident that India is destined to become a global superpower, but admits that a clear strategy is of paramount importance to structured growth. Jaitley has vowed to make sure that…

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Purchasing Power Parity (PPP) Explained

Purchasing Power Parity (PPP) Explained

[wpspoiler name=”Quick Definition” ]Purchasing power parity is when the exchange rate is adjusted to allow for accurate comparisons of purchasing power.[/wpspoiler]

What is purchasing power parity?

Purchasing power parity (PPP) is a theory developed by Gustav Cassel, a Swedish economist, in 1918. It states that the exchange rate between two countries is in equilibrium when their purchasing…

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Same people, new borders?

Same people, new borders?

There is perhaps no greater testament to the tenacity with which states will hold onto their national identity and borders than the relatively unchanged map of the Middle East since the Second World War. The half a century long border inertia that has gripped the region may soon come to an end however, as Iraqi Kurdistan will soon push a referendum through to legitimise their long-held desire for…

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John Forbes Nash, Jr. (1928 - )

John Forbes Nash, Jr. (1928 – )

John Forbes Nash Jr. is an American mathematician and co-recipient of the 1994 Nobel Prize in Economics for his work on game theory. He is also the subject of the 2001 film ‘A Beautiful Mind’.

Life

John Nash Jr. was born in Bluefield, West Virginia in 1928 to John Forbes Nash (Senior) – after whom he was named – and Margaret Virginia Martin. John Nash Senior served in the army during WW1, then…

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Third Degree Price Discrimination Explained

Third Degree Price Discrimination Explained

[wpspoiler name=”Quick Definition” ]Third-degree price discrimination is when a firm charges different market segments different prices for the same good.[/wpspoiler]

What is third-degree price discrimination?

Third-degree price discrimination is a pricing strategy which involves a firm charging different market segments different prices for the same good. 

For example, Museum XYZ charges adults…

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Gondola Licence and Transaction Costs

Gondola Licence and Transaction Costs

In the last two weeks, I travelled across Europe and visited one of my favourite cities in Italy, Venice. For centuries, the Venetian rowing boats, Gondola, are the most popular means of tourist transportation in Venice. Thousands of tourists come to Venice every year to ride on Gondolas which give perfect sights of Venice along the Grand Canal.

As an economics student, I was curious on how I was…

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First Degree Price Discrimination Explained

First Degree Price Discrimination Explained

[wpspoiler name=”Quick Definition” ]First-degree price discrimination is a pricing strategy which involves a firm charging every consumer the maximum price that they are willing to pay.[/wpspoiler]

Also known as:

Perfect price discrimination; optimal price discrimination

What is first-degree price discrimination?

First-degree price discrimination is a theoretical pricing strategy which involves…

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The Bank of England’s Mixed Messages

The Bank of England’s Mixed Messages

The Bank of England’s Governor appears to have made two contradictory statements in recent weeks concerning the widely anticipated increase in interest rates. This is fundamentally a result of divergent expectations of the Bank on one side and businesses, households and markets on the other. Moreover, it represents a serious challenge to the Bank’s use of forward guidanceand the stability of…

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A Beginner’s Guide to Price Discrimination

A Beginner’s Guide to Price Discrimination

What is price discrimination?

Price discrimination is a pricing strategy which involves a firm charging a variety of prices for the same good. Firms are able to charge a variety of prices because the amount that someone is willing to pay varies from consumer to consumer. Typically, this strategy is associated with firms which operate as monopolies in a market.

Examples
  • Train fares are cheaper…

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Replacement Ratio Explained

[wpspoiler name=”Quick Definition” ]Replacement ratio is simply the ratio of the income received from unemployment benefits to the ratio of income received whilst employed.[/wpspoiler]

Also known as:

Income replacement ratio

What is replacement ratio?

In an economy, replacement ratio is the ratio of the income received when unemployed to the income received when employed.

The replacement ratio…

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