Two Types of Monetary Standards Explained
There are two types of monetary standards, one far more prevalent in developed economies than other. Monetary standards refer to the 'system' or 'framework' that controls or facilitates the movement of money.
The two monetary standards are:
1. Commodity Standard.
2. Inconvertible 'managed' paper standard.
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Bad Money! Gresham’s Law Explained
In a previous post we discussed the pros and cons of the two monetary standards: commodity and paper. Evidently developed economies have moved beyond the commodity (or metallic) standard for a good reason.
Bad Money Drives Good Money Out of Circulation
There is in an inherent problem for a bimetallic standard that can be described as 'Gresham's Law'. Here is an example why a bimetallic standard pushes a country to a monometallic standard.
How to Predict Foreign Exchange Movements Before They Happen
The reason domestic currencies drop may baffle some newbie FOREX investors since many movements are rooted in what are called 'expectations'. You see, currency movements move up or down (depreciate or appreciate) based on expectations and/or real announcements. Here is an article to help you track currency movements because predicting currency movements is a skill that can be learned to some degree.
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Economic Definitions of Inflation Topics
Here are core definitions when discussing the topic of inflation (courtesy of the Bank of Canada)
CPI inflation
A measure of price movements, produced by Statistics Canada and obtained by comparing the retail prices of a representative "shopping basket" of goods and services at two different points in time. Learn more
Core inflation
Year-over-year growth in a variant of the CPI that excludes the eight most volatile components —which account for 19 per cent of the CPI basket—(fruit, vegetables, gasoline, fuel oil, natural gas, mortgage interest, intercity transportation, and tobacco products) as well as the effect of changes in indirect taxes on the remaining components.
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Resolutions for Keeps - Personal Financial Planning for the Home
Do you know anyone who would drive their car for more than a few days with a broken fuel gauge?
Unless that person enjoys taking the risk of being stranded and hiking to the nearest gas station…
What do we want our last known address to be?
A while back when I owned a van its speedometer cable became disconnected. Until it was fixed it was difficult to know whether I was speeding. During that time my perspective on driving changed considerably.
So what does any of the above have to do with the topic that pushes people to spend years in school, days working and worrying, and is a principal cause of divorce and crime? How do car stories relate to the means that allow us fun and to do good for others? Does Cindy have auld lang syne hangover?
Presumptions of Self-control theories
Here are some thoughts on presumption of self-control theories. They are based on the presumption that we have bounded willpower and that there needs to be a course of action to which keeps in the individual on track to meeting goals and expectations. Thus they derive incentive and constraints as solutions. Constrains, or rules, are meant to restrict the individual's opportunities.
Do you have any thoughts on self-control theories and relation to behavioral or other forms of economics/choice making?
Social dilemmas in Behavior Economics
Social dilemmas are simple situations between a pair of people, to a group of people, that involve making decisions that will ultimately affect their well being and the well-being of the overall group. The 'players' in the social dilemma have the choice to cooperate to which is known as taking the best interest for the group or taking the action for self interest known as defecation. In the situations, it is always better if the people decide to coordinate and cooperate amongst each other for gain of the overall group.
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200 Barrel Oil Will Benefit Canada
So says a recent article in the National Post. Many points are worthwhile to read; fact is, Canada will benefit greatly from expensive oil. Furthermore, we have oil, and we are a stable country. Woot. Two points though in my opinion that are definite cons.
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Happy Forth of July from DiscussEconomics!
DiscussEconomics would like to wish all our American blog readers and contributors a happy Fourth of July. Hope you actually got the day off! Many more exciting new bloggers and topics to come this year, stay tuned!
-B
Happy Canada Day from DiscussEconomics
To all our Canadian readers and students we want to wish you a Happy Canada. Keep it real Canada! (Which is where we're from FYI.)
- B
