Deflation in America: A Cause for Celebration or Concern?

Deflation in America: A Cause for Celebration or Concern?

Is deflation in America a good or bad thing? How does it impact American households and the broader economy? In mid-November, Walmart CEO Doug McMillon and investor Cathie Wood flagged the potential of a deflationary period in the US, citing shifting consumer behavior and falling prices. Deflation, while promising lower prices for consumers, can signal a slowing economy and lead to wage cuts, job losses, and potentially a recession. Here’s a look at what deflation would mean for US citizens.

The Rise of the East India Company: From Traders to Rulers

The rise of East India Company illustrated with soldiers and ships on water.

How did England’s East India Company get so powerful? How did it pave the way for colonial rule in India? In his book The Anarchy, historian William Dalrymple traces the ascent of the English East India Company. Originally a modest group of traders, the company transformed over the 17th and 18th centuries into an imperial powerhouse that imposed British rule across the Indian subcontinent. Continue reading to learn about the fascinating rise of the East India Company.

2023 US Holiday Sales Show a Complicated Economy

2023 US Holiday Sales Show a Complicated Economy

Is holiday spending breaking records or masking economic troubles? What’s the outlook for shopping trends? How are retailers being impacted? US holiday sales over Thanksgiving topped $10 billion online, but growth lags behind previous years. Shoppers are flocking to discount retailers, leaving traditional stores in the cold. “Buy now, pay later” programs are gaining traction, offering relief and risks for strained consumers. Continue reading to learn what the holiday sales numbers say about the US economy.

Fairness in Economics: 2 Examples That Prove It Doesn’t Work

A person abiding by fairness in economics as they write on a paper with coins.

Should fairness be accounted for in economics? How does fairness conflict with budget optimization? Economist Richard H. Thaler argues that consumers are concerned with fairness and cooperation, even when these concerns get in the way of their budget. This is shown by two experiments: the ultimatum game and the prisoner’s dilemma. Discover why fairness in economics doesn’t always have a happy ending.

The Flaws of Efficient Market Hypothesis in Behavioral Finance

A person picking a dollar bill from a money tree

What’s the efficient market hypothesis in behavioral finance? What are the flaws of the efficient market hypothesis? While famous economist Richard H. Thaler agrees with the EMH’s claim that it’s impossible to consistently beat the market, he disagrees with the claim that securities’ prices always reflect their intrinsic value. He considers three arguments against this thesis. Take a look at the three arguments against the efficient market hypothesis below.

Prisoner’s Dilemma in Economics: Would You Betray or Cooperate?

Prisoners holding dollar bills behind bars as symbolism of prisoner's dilemma in economics

What’s the prisoner’s dilemma in economics? How does the prisoner’s dilemma represent cooperation? The prisoner’s dilemma is an experiment that reveals if people would betray or cooperate with their partners, depending on the reward and punishment. This theory can be applied in an economic setting as well. Check out how the prisoner’s dilemma works when it comes to finances.

What Is the Law of One Price? How It Disputes the EMH

A man thinking about the law of one price with dollar signs as eyes.

What is the law of one price? How do closed-end funds violate the law of one price? According to economist Richard H. Thaler, one argument against the efficient market hypothesis is the violation of the law of one price. This is a thesis from traditional economics that a security should never sell at two different prices at the same time. Continue reading to learn more about why the law of one price isn’t consistent with the efficient market hypothesis.

The Top Misbehaving Quotes by Richard H. Thaler

A dollar shaped as a triangle in front of an open book.

What are the best Misbehaving quotes on behavioral economics? Why do consumers behave the way they do in economic situations? In Misbehaving, Richard H. Thaler makes the bold argument that traditional economics is no longer applicable. That’s because people behave irrationally when making financial decisions. To get a better understanding of Thaler’s arguments, check out his best Misbehaving quotes.

The East India Company in Bengal: Overseers of Crisis

The British and Indians meeting in a historical landscape in late 18th century.

How did the East India Company govern in Bengal? How did it contribute to one of the worst disasters in the region’s history? What’s the Bengal Bubble? After the collapse of India’s Mughal empire, the East India Company expanded its trading operations and military capacity. The company set its sights on Bengal, a wealthy province on India’s northeastern coast. It took advantage of political chaos to rise to power. Read more to learn about the East India Company in Bengal, specifically how it maintained and used its power and the impact it had on the province.

Misbehaving by Richard H. Thaler: Book Overview & Takeaways

An open book on a messy desk topped with papers.

Why is traditional economics outdated? Why are behavioral economics important in everyday life? In Misbehaving, Richard H. Thaler says that the theories of traditional economics rest on a faulty foundation. Traditional economics assumes that consumers act rationally and that financial markets reflect securities’ true values. Read below for a brief overview of Misbehaving.