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.Continue Reading

Democracy is based on winning the popular vote and maintaining an image that will keep the public content. As a result, it might hinder politicians and lawmakers from creating policies that would be good for economic growth but unappealing to the voter bank.Continue Reading

As economies across the world have come crashing down due to the coronavirus, Indian consumers are suffering from suppressed wages, mass lay-offs, and reduced economic activity. Yet, while the entire country’s economy has been turned upside down, one sector of the market has silently exploded: Instant loan suppliers, lending money to Indian workers who desperately need the funds to pay off critical bills. These lenders, however, charge gigantic interest rates which enable them to profit off of the backs of economically insecure workers. Continue Reading

In the past decade, impact investing has seen an exponential increase in emerging markets such as India, China, Philippines, and Vietnam – regardless of the risks involved. In this article, our Economic columnist attempts to identify the true driver of impact investment – a commercial opportunity for returns; or a Gen Zer’s guilty conscience? Continue Reading