While the Nordic model may not be completely suitable for other countries, or even sustainable in the long-term, it can still inform our understanding of how other regions around the world can be improved. Key ingredients for its success thus far, such as social cohesion and low levels of inequality, are phenomena to study, and potentially emulate, that could benefit individuals worldwide.
Macroeconomic theory suggests that without any outside intervention, the macroeconomy will self-adjust and return to its long-run state after short-term shocks. The decision for policymakers thus boils down to a cost-benefit analysis taking into account factors like intertemporality and risk tolerance — they can either wait and allow the economy to adjust organically, or sink resources into actively trying to stabilize the economy, taking on the risk of further destabilizing it.
It seems that even in a bearish economy, there is still more money chasing innovation driven by limited, bright minds. Perhaps that might not come as a surprise. There are hundreds of different parts of aging that need to be better understood, and every few weeks, a discovery revolutionizes various fields of research and methodologies.
Despite the political backlash and uncertainty for the macroeconomy brought upon by their plan, the Biden Administration remains steadfast in its argument that it is a vital step for Americans in the ultimate goal of solving the student debt crisis. Moreover, they believe it to be an efficient and sustainable solution — they maintain that because of the high default rates for student loans, the actual cost of the debt forgiveness plan will be lower than the theoretical expectation; however, the specifics of that value have proven to be difficult to calculate.
With the growing popularity of green movements in every facet of society, the Securities and Exchange Commission (SEC) is looking to launch the largest green financial initiative in history. They plan on implementing a new climate disclosure rule that will require all public companies to disclose their climate data. If the rule is adopted, it will bring about large pivots in global equity portfolio management and alter the market landscape for many industries.
2021 has been a very positive year for economic growth worldwide, nevertheless, rumors of a looming recession are becoming more of a reality. Europe’s increase gas prices, China’s Omicron outbreak, and the US’s rapid inflation are blaring threat to an economic downfall that could have been avoided.