Discuss Economics Blog

Microeconomics: Competitive Market Behavior

Ro Econ — Sun, 21 Apr 2013 12:16:08 +0000

Competitive Behaviour vs. Competitive Market Structure Here are some key terms to begin discussing and understanding competitive behaviors and market structures. Competitive behaviour is the degree to which individual firms compete against each other to gain higher market shares, earn higher profits, etc. It is also the manner in which firms compete against each other [...]

Microeconomics: Competitive Market Behavior is a post from: Discuss Economics Blog

Seven Different Classifications of Financial Markets

Ro Econ — Sun, 14 Apr 2013 12:50:47 +0000

We just finished five classifications of capital markets, so why not the financial markets as well?. Here is a list of the seven different classifications you’ll find in the financial markets. 1) Debt vs. Equity Markets - Legal obligation vs. - Ownership position in the business 2) Primary vs. Secondary - New issues vs. - [...]

Seven Different Classifications of Financial Markets is a post from: Discuss Economics Blog

Increasing Money Stock Increases Price Level but not Wages

Ro Econ — Wed, 10 Apr 2013 12:26:04 +0000

Quantity Theory of Money and Real Wage In a classical model, increasing the money stock leads to an increase in the price level, however, real wages are not affected. Why is that? Well, the quantity theory of money holds in the long run due to the following reason. The long run aggregate supply curve (classical [...]

Increasing Money Stock Increases Price Level but not Wages is a post from: Discuss Economics Blog

Too Much Financial Information at Your Fingertips

financewriter — Thu, 28 Feb 2013 17:24:45 +0000

Have you ever had that feeling of being overwhelmed when looking at a buffet of 100 items with all the choices available to eat and enjoy? Ever walked out of a buffet restaurant with a slight case of upset stomach? Well it can happen in more than the food realm. Although the worldwide web has [...]

Too Much Financial Information at Your Fingertips is a post from: Discuss Economics Blog

Why Forgoing TFSAs or RRSPs Will Cripple Your Retirement

Ro Econ — Fri, 22 Feb 2013 12:37:39 +0000

It’s RRSP season and there are only a couple of weeks left to invest some cash to reduce your taxable income for 2012. Many people are looking for advice on how to spend any extra funds. With the rush to invest prior to the March 31st deadline (in Canada), more than a slew of advice [...]

Why Forgoing TFSAs or RRSPs Will Cripple Your Retirement is a post from: Discuss Economics Blog

Free List of Cash Flow Analysis Articles

Ro Econ — Thu, 07 Feb 2013 19:55:31 +0000

NPV, IRR, Cash Flow, and Project Evaluation Tools and Methods We have written a few key articles on the area of cash flow analysis here at DiscussEconomics. This article will give you a quick summary of each article and correlating link for easy review of each topic. Feel free to book mark and link to [...]

Free List of Cash Flow Analysis Articles is a post from: Discuss Economics Blog

America & the Trillion Dollar Conundrum

Ro Econ — Wed, 16 Jan 2013 00:57:16 +0000

Little did we know that in 1999 current economists and policy makers were seeing into a future 2013 when the mighty American economy would be brought to its knees from its own insatiable appetite for corporate profits and the solution to escape the debt riddled debacle, and the clutches of stubborn House Republicans, would be [...]

America & the Trillion Dollar Conundrum is a post from: Discuss Economics Blog

Relation between Inflation and Interest Rates (graph)

Ro Econ — Mon, 14 Jan 2013 18:46:32 +0000

A number of people and students wonder about the relationship between inflation rate movements and the quarterly interest rate (nominal and real interest rate). Here are observations based on Canadian data over a 50 years period that tracks T-Bill interest rate, consumer price index, and real interest rate. This graph illustrates a number of movements. [...]

Relation between Inflation and Interest Rates (graph) is a post from: Discuss Economics Blog

Microeconomics Cost Formulas

Ro Econ — Fri, 21 Dec 2012 18:50:15 +0000

Here is a list of some of basic microeconomics formulas pertaining to revenues and costs of a firm. Remember when you’re using these formulas there are a variety of assumptions, namely, that the the firm is profit-maximizing (making as much money as they can.) Here are total cost formulas, average variable, marginal cost, and more, [...]

Microeconomics Cost Formulas is a post from: Discuss Economics Blog

Where Do Banks Get Their Money? Fractional Reserve Banking

Ro Econ — Tue, 18 Dec 2012 16:15:43 +0000

Do Banks Create New Money out of Thin Air? **Re-posted after the events of the credit crunch and 700 bailout packages, enjoy the read and learn how the banks got themselves in this mess.** Here’s the story. Banks keep on lending money, but where do they get it from? Do they borrow from bigger banks [...]

Where Do Banks Get Their Money? Fractional Reserve Banking is a post from: Discuss Economics Blog