At the same time, “economics” is in everyone’s life, because every day, we have to make many simple economic decisions, including those related to earning money or consuming various goods or services. We interact with various institutions, like schools, hospitals, and banks — and yet they are all part of the economic life of the country. At the same time, few people think about how things work and why they work the way they do. 

It is economics that provides answers to the questions that many people ask: how big business got started and why it is so difficult for small businesses to find their niche, where inflation comes from and why prices rise, how advertising comes about and why it is so prevalent in our lives, and why we are called consumers. Sometimes, it takes small steps to answer a difficult question, like installment loans for bad credit.

Many economic theories attempt to explain the impact of society on the world around it. One of these theories is the “donut economy” proposed by British economics professor Kate Raworth. The graphic representation of this theory looks like a donut, with two circles outlining social and planetary boundaries that should guide human progress in the 21^st century. In this approach, the author believes that real change in the economy starts with people, with each one of us.

What is it about?

The Donut Economy is a modern approach to environmental economics that has a vivid visual representation. 

The 21^st century has brought many challenges. Meeting the needs of all people within the limits of the planet’s capacity is one of the biggest. We must ensure that no one is deprived of the most basic necessities (food, shelter, rights, etc.) while at the same time not overwhelming the Earth’s life support systems on which we depend (climate, fertile soil, drinking water).

A playful and serious approach to formulating a response to this vital challenge can serve as a guide for human progress in this century, the social and planetary boundaries of a donut. Draw two circles representing these social and planetary boundaries and center them. The symbolic meaning of the centered circle is that it represents the social boundary, including basic human rights, below which we are not allowed to go. The outer circle represents the ecological limit. This limit must not be exceeded to preserve essential natural resources. The space between these circles is an ecologically safe space for human flourishing. Raworth identifies nine major environmental limits that cannot be exceeded: climate change, biodiversity loss, ocean acidification, land degradation, freshwater scarcity, nitrogen and phosphorus concentrations, chemical pollution, air pollution, and ozone depletion. The inner circle of limits addresses basic human rights: ending hunger, healthcare, quality education, gender equality, clean water and sanitation, affordable and clean energy, decent work, and others.

The author insists that real change in business starts with people. To respond to current economic challenges, she encourages readers to change themselves and their vision. First, the author suggests changing the target. Economists around the world have focused on GDP (Gross Domestic Product) as a measure for the last few decades. This method masks income and wealth inequalities and does not account for environmental degradation. It is necessary to ensure the rights of every human being within the limits of the life-giving planet to create the conditions for balanced prosperity for all humanity.

Second, we need to look at the broader picture. It is time for a new image of the economy, one that is integrated with society, nature, and the power of the sun. This reimagining requires new messages about the key role of households, market power, public partnerships, and creativity in sharing wealth. 

Third, the education of human nature. The author emphasizes that society has become what it is today based on the image of a rational, selfish, isolated person. Human nature is much richer than this image. Therefore, we need to draw a new self-portrait in which we are naturally social, interdependent, connected, full of values, and dependent on nature.

And fourth, Kate Raworth calls for creating to generate. Destructive production organization results in environmental degradation. Humanity faced an environmental crisis instead of preserving the life-giving wealth of nature. The fact that most of the destructive consequences of production are irreversible was realized too late. To bring people back into full interaction with the cyclical processes of life on Earth, the author insists on the creation of a circular economy.

The post Donut Economy — A Way to Make Humanity Happy appeared first on Economics-Intelligence.

1. High inflation and tightening by the central bank
2. Russia’s continuing invasion of Ukraine
3. The still present effects of COVID, especially in China

Here are the top 5 trends to consider in 2023 in the world economy, cities, business environment, industrial production, and commodities market.

1. Central Banks Go Separate Ways

Based on what has happened in the past few years, you might think that all central banks work together with a single theory. But things will be very different this year. As local problems outweigh global forces, there will be a broader range of decisions. So, note the new pattern when the US Federal Reserve finally starts to change course in the coming months. But don’t assume that the rest of the world will follow suit immediately.

We also asked, Frank Glemstone, an online money loans expert from MoneyZap, who has some of experience and expertise in questions regarding the banking system and finances in general about the future of the banking system and he replied with the following quote “Better to have consistent personal financial options and always be prepared in any given situation”. 

2. New Pressure on Unlikely Russian Oil Buyers

After sanctions, it’s not surprising that Russia has been looking for other buyers for its oil. But we weren’t sure which countries would take their deals. Australia, Britain, Canada, and the U.S. have all banned buying oil from Russia outright. The Group of Seven (G7) countries have also agreed to refuse or stop buying Russian oil by May 8, 2022.

But China and India, indifferent to Russia, are getting discounts on their crude oil. In March 2022, China and India bought more oil from Russia than the 27 EU member states did as a whole. 

If oil supplies remain in 2023, experts say Russia could become India’s leading supplier. Other countries, like Sri Lanka, which has been through a tough economic time, have also bought cheap crude oil from Russia out of need.

3. Chinese Tourists Are Coming Back to Asia

In 2019, there were more than 260M tourists in the Asia-Pacific. This led to the creation of almost 190 million jobs in the area. The pandemic hit, China shut down, and international travel hasn’t been the same since.

China’s ban on travel has made a massive hole in the international tourism business. More than only hotels and restaurants are affected. When Chinese people traveled abroad, the money they spent there added to the foreign currency reserves of those countries.

But there might be a big break coming. After China reversed its COVID controls at home, Beijing ended its restrictions on international travel. But with the rising number of cases in China, there are new challenges. Some popular tourist spots, like Japan, have asked for new mandatory tests for Chinese travelers. Low consumer confidence and the loss of jobs and savings due to the pandemic will also slow travel recovery.

4. The Real Economy, Not Cryptocurrency, Will Lead the Way.

Cryptocurrency lost two trillion dollars in 2022, and we can’t say things will improve in 2023. But what is more worrisome is how the interest in crypto compares to other economic issues.

Two trillion dollars is, of course, a lot of money. But the world’s gross domestic product (GDP) is around $100 trillion. And despite Crypto being a new show, characters like Sam cBankman-Fried make it hard to turn away. 

But 2023 will be the year when the real economy gets back at the fake economy. Central banks will move forward with their digital currencies. A global recession will hurt a lot more people than FTX ever could. And China’s ability or inability to make things will determine the future of millions.

5. G20 Voters to Have Fewer Avenues to Express Discontent

According to our new research, 2023 is shaping to be a quiet year for elections in large economies. In the last 15 years, the global economy has only grown by less than 2% (a good indicator of a global recession). And the Group of Twenty (G20) nations have only held so few elections once. 

Only Argentina and Turkey are set to have national elections in 2023. (Turkey is the 17th largest economy in the world, and Argentina has been out of the top twenty for a long time.) Both countries have big inflation problems, but only one has just won the World Cup.

So, unless there is another snap election in a parliamentary democracy, people in none of the G7 countries will be able to show how unhappy they are during a bad year for jobs and GDP. 

The post What Will the Global Economy Look Like in 2023? appeared first on Economics-Intelligence.

The International Monetary Fund (IMF) issued a warning in October 2022. They said that inflation and interest rate hikes by central banks to fight it could threaten the entire global economy. This is a more than a good reason to find out:

• What is inflation?
• What causes inflation? and,
• How do we deal with inflation?

What Is Inflation?

Inflation is when prices go up all over the economy. When prices go up for no reason, money can buy more. This can cause inflation to rise and wages to go up. On the other hand, when prices go up fast, it can be hard on an economy. “Hyperinflation” is a stellar example. This is when people spend their money ultra-fast because prices go up every hour.

Often, central banks try to control inflation. Central banks use interest rates to keep prices from going up too much. When inflation is expected, there isn’t much to worry about. The Federal Bank wants prices to go up by 2% each year.

But since 2021, prices in the U.S. and worldwide have increased faster than anticipated. Because of this, many central banks have raised interest rates because of rising prices. And this could hurt the whole world’s economy and cause a recession in 2023.

What Causes Inflation?

At its core, inflation is caused by too much demand compared to how much is sold. But why does demand go up faster than supply? This can happen for a few different reasons. Understanding them helps to look at the three pillars of macroeconomics. David Moss, author of A Concise Guide to Macroeconomics: What Managers, Executives, and Students Need to Know, organizes his book based on the following:

• output (how much an economy makes), 
• money (how much money people have or can quickly get), and 
• expectations (what people think will happen next). 

All three of these things affect inflation.

Supply Shocks

Supply shocks, such as disruptions to energy supplies, often cause inflation. For example, energy prices rise if a battle shuts down several oil fields. Since energy is a crucial input, other prices climb. “Cost-push inflation” describes this.

A decline in a good’s supply should lead to higher prices because of fewer purchasers. But it’s trickier in practice. For example, a supply shock may generate lasting price increases since few reasonable alternatives exist. Or it could be because nobody knows when the supply shock will end. Or because the initial price hike affects people’s inflation expectations.

Money Supply

Then there’s money supply demand. Moss illustrates that more money causes inflation. With more cash, people discover new reasons to buy, he writes. Unless the supply of goods and services expands, rising consumer demand will drive up prices and fuel inflation. “Too much money chasing too few goods” causes inflation, say economists. “Demand-pull inflation” describes this.

Personal Expectations

In many inflation models, the reason is an unanticipated money supply increase. If everyone feels like demand will increase (because more money is flowing), supply will too. Unexpected demand (or supply) causes inflation.

Inflation expectations affect real inflation. As prices grow, employees’ salaries buy less. If individuals predict rising inflation, they’ll want higher pay to preserve their living level. If firms expect wage inflation, they’ll boost prices, causing a “wage-price spiral” that pushes inflation.

Because expectations matter, central banks work hard to keep inflation expectations “anchored.” That means they aim to convince everyone they can fulfill their inflation goal. They do this so people don’t care about monthly inflation figures. And people will believe inflation will grow by whatever the central bank says.

How Do We Deal With Inflation?

Inflation rarely affects effective money management. But money managers should examine a few factors during inflation. First is how to deal with price inflation. The most basic policy foundation is to have an effective system for changing prices. This method is complemented by how to lower the cost of price shifting. 

The second method is to boost morale and communication among staff. In a tight labor market, you may need to do more to keep competent staff. And this might be challenging owing to rising interest rates and wags. Former IT CEO and Harvard Business School instructor Lou Shipley suggests focusing on culture to keep people satisfied and fulfilled in the workplace.

Lastly, you need a plan for maintaining stable levels of inflation. Central banks fight inflation shocks by hiking interest rates, so companies must adapt. Unfortunately, higher rates enhance borrowing costs and divert investors’ focus to short-term gains.

The post What Causes Inflation? appeared first on Economics-Intelligence.

They still have value, though. Businesses need to have some idea of what’s to come in order to continue to make money and be successful, and we all need accurate trend predictions, too, to plan our lives effectively.

Given all that, it’s worth taking a shot at some speculative economic predictions about some important major trends. We’ll go with the numbers 5 and 10 just to keep things well-rounded, i.e., what are the 5 major economic trends that will dominate the next 10 years?

1. The Global Economy Shift

Sometimes a solid prediction starts at the top, so for this one, we’ll pick out China and the US. The two superpowers are competing at almost every level—economically, to establish technological superiority, and even military competition to establish who has the best arsenal of bristling weapons.

Many have compared it to the Cold War, and indeed, many experts are certain there will be dangerous military confrontations and skirmishes.

That will lead to more economic competition, with the result that there will be two global economies—east and west.

No one knows where this is going, really. All we know is that it’s different, and countries are trying to anticipate what comes next by forming new alliances and partnerships.

2. The Wealth Question

Income inequality has been a growing issue for years now, if not decades, and it’s only going to become more prominent in the coming decade.

The pandemic made this abundantly clear, as the US government was forced to bail out individuals in need while the Federal Reserve loosened borrowing restrictions to help prop up a struggling economy.

The schisms continue to grow, and the new factions are becoming ever clearer. They include rich vs poor, young against old, and the result is the creation of what’s being called a “disorder cycle.”

This is spawning new kinds of confrontations—outrage about crime, protests of all sorts, the January attack on the US Capitol, and standoffs between medical public health advocates and anti-vaxxers.

It’s all about the ongoing redistribution of wealth, and based on what we’re saying now it’s going to get worse before it gets better. The phenomenon is fascinating, and it’s popping up and taking a toll in all kinds of unexpected ways.

3. Business Cycles: Which End is Up?

For the last half-dozen decades or so, business cycles have been fairly well defined. Banks and governments try to stimulate struggling economies with interest rates that improve borrowing power, then tight those rates up when inflation rears its ugly head.

Right now we seem to be at the beginning of an inflationary cycle. That means more money will have to be printed, which will drive down the value of a dollar. How long this part of the cycle lasts will have a lasting impact on the world economy, divided or not, for the next decade.

4. The AI Question

AI is the new force in the global economy. In the next ten years, it’s expected to drive as much as $13 trillion worth of economic output, and this will drive up the GDP at an annual rate of just over 1 percent.

This might seem like a small number, but in reality, it’s a huge shift. AI is starting to play a prominent role in virtually every industry—the automotive sector, energy utilization, the medical sector when it comes to advances in disease detection, and advanced diagnostics based on leaps forward in genome research.

Once again, the US and China are at the center of the battle to win the AI race, and the winner will have a clear economic advantage for the next ten years, if not longer.

5. New Demographics

Demographic shifts are often trendsetters in every decade, but the one that’s happening now has sparked some especially sharp divisions between young and old.

The affluent conservatives are winning many of the old vs young battles now, but this will inevitably change. In the next 10-15 years, the younger portion of the electorate will continue to grow in numbers and power, and at the very least that will probably mean higher social spending to try and balance out the wealth inequities that have become so blatantly obvious in the last few years.

The post Top 5 Economic Trends for the Next 10 Years appeared first on Economics-Intelligence.

Things To Keep In Mind While Writing Your Economics Assignment

Follow the below-mentioned tips to write an amazing economics assignment.

Research

Collect all the data accessible to you on the topic that you have been assigned or that you have picked for yourself. You can do this by going through the books available at a library, the web, and other sources that have databases related to your research. You should not indulge in a lot of sources as that would confuse you. Stick to the resources that you find are relevant and explain your topic in a good way. In-depth research will assist you in composing assignments that are factually and technically accurate. All you have to do is have a clear idea about your topic so that you can explain to the person reading your assignment what it is about. This can only be done if you do the research in the correct manner.

Read everything and then make an analysis of your own. Include everything that you think is important.

But in order to be 100% sure that your research is correct, we recommend you to buy assignment online on EasyEssay.us, it’s a legit writing service that is based in the USA.

Assignment Structure

You can use the format that has been provided by your teacher. If not then you should follow the standard format of the assignment. If you do not follow a proper structure you may end up losing marks which are not at all good for your academic records. In case you are not aware of the format here is the right one to write your economics assignment-

• Title – The first page should contain the topic of your assignment.
• Index – Include all the sub-topics that are included in your assignment. (This may not be necessary when it comes to small assignments.)
• Body – Now write all the things that should be covered under the topic. Write only relevant stuff and do not stray from the topic. Include all the facts, reviews, and literature that support your topic. The methods and the findings are also to be written here.
• Conclusion – Concluding the topic is very important as it sums up your assignment and also shows your understanding of the assignment. You should end it with your thoughts on the subject and give suggestions.
• Referencing – This is quite an important part of the assignment. If you want the plagiarism content to be low you can give credit to all the sources that you have cited in the assignment. Follow the format that has been asked to. You can learn various referencing styles from the internet.

No Unnecessary Information And Jargon

The language used in the assignment should be easy to understand, composed of simple English, and clear. Try avoiding the use of jargon wherever unnecessary and also stay clear of highly technical language. Include them only when it is needed. When you overuse a high level of terminology it becomes difficult for the person reading your work to clearly understand what you are trying to convey to them.

Avoid making unnecessary repetitions of the information and complete your assignment within the word limit assigned to you. If you keep on repeating the information the reader will understand you only wanted to reach the word limit and have not taken the assignment seriously. Also do not include information that has nothing to do with the topic that you are writing about. Stick to only the relevant points.

Edit And Proofread

Before you submit your assignment make sure you read it once thoroughly so that you can remove the mistakes and edit it wherever it is required. This way if there is any problem in the assignment it will be solved giving you better chances of scoring well in the assignment.

Conclusion

If you want to score good marks in your economics assignment then you should keep all of the above-mentioned tips in your mind. If you follow them all and work hard in making your assignment then you will surely get a good grade.

The post How to Write an Economics Assignment appeared first on Economics-Intelligence.

Eurogroup president Pascal Donahoe said: “We still expect the current inflationary pressures to start falling this year. We expect this to happen as the supply chain in some sectors of our economy streamlines, and with a reduction in the high savings rate, which also played a role in price pressures last year.”

Eurozone countries expect economic growth to slow this year, from 5.2% to 4.2%. A trend that analysts extrapolate to the global economy as a whole, noting that it has literally “stumbled” over omicron and inflation.

The post Eurozone expects growth to slow down appeared first on Economics-Intelligence.

It’s all due to rising energy prices: according to Eurostat, they cost 28.6% more than a year ago. Prices of food, alcohol and cigarettes rose by 3.5%. The cost of services rose by 2.4%.

Inflation affected Lithuania, Estonia, Slovakia, Belgium and Latvia the most. France has coped with the situation better than anyone else, where inflation does not exceed 3.3%, and economic growth in 2021 has become the highest over the past 50 years (+7%).

The European Central Bank will hold a meeting on Thursday. The figures published the day before are more than 2 times higher than the ECB’s inflation target (2%).

In contrast to the Bank of England and the U.S. Federal Reserve, the ECB is expected to leave its key rate unchanged, at zero level.

The post Eurozone inflation at 5.1% in January, breaking a record for the third month in a row – Eurostat appeared first on Economics-Intelligence.

The International Monetary Fund released its January report with a revised outlook.

Gita Gopinath, first deputy managing director of the IMF, said, “At the beginning of the third year of the pandemic, the death toll has risen to 5.5 million, and the associated economic losses are expected to be about $13.8 trillion by the end of 2024.”

This year’s global GDP growth rate will be 4.4%, up from 4.9% in the October forecast. In the eurozone, GDP will add 3.9 percent, and growth will slow to 2.5 percent next year.

The IMF’s latest forecast takes into account the impact of the omicron strain on economic activity in the first quarter of this year, but that impact will weaken starting in the second quarter.

The IMF pointed to the possibility of global risks, as geopolitical tensions remain high and the ongoing climate emergency means that the likelihood of major natural disasters remains elevated.

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