Latest posts
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Genuine Progress Indicator (GPI) vs GDP: Meaning, Formula, Examples, and Why It Matters
Why Economists Look Beyond GDP For decades, gross domestic product (GDP) has been the gold standard for measuring a nation’s economic performance. It captures the total value of goods and services produced within a country, offering a snapshot of output and growth. Yet, GDP has long faced criticism for leaving out crucial aspects of well-being.…
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How the Quantity Theory of Money Explains Inflation and Price Levels
Introduction to the Concept The quantity theory of money is one of the most widely discussed ideas in economics. At its core, it links the amount of money circulating in an economy to the overall level of prices. The theory suggests that when more money is available, prices generally rise, and when money is scarce,…
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Adverse Selection: Understanding Market Imbalances and the Lemons Problem
Markets work best when everyone involved has access to the same information. When this balance is disrupted, certain problems emerge that can make transactions less fair and sometimes even harmful. One of the clearest examples of this imbalance is adverse selection—a situation where one side of a deal knows more than the other, and this…
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Understanding Commerce and How It Differs from Business and Trade
Commerce is one of the cornerstones of economic life. At its simplest, it refers to the exchange of goods and services between individuals, organizations, or governments. While the term is often used interchangeably with “business” or “trade,” each word carries a distinct meaning. Recognizing these differences is important for anyone who wants to understand how…
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What Makes a Company Scalable? Traits, Benefits, and Real Examples
In today’s fast-changing economy, businesses are constantly looking for ways to grow without burning through excessive resources. Some companies manage this better than others, and the secret often lies in scalability. A scalable business is not just one that grows bigger, but one that grows smarter—expanding its operations and revenues faster than its costs. This…
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Jackson Hole Economic Symposium: Meaning, Impact, and Global Significance
High in the scenic mountains of Wyoming, a small but powerful economic gathering takes place each summer that captures the attention of financial leaders and market watchers across the globe. This is the Jackson Hole Economic Symposium, a conference with outsized influence on global monetary policy, trade, and financial markets. What began as a regional…
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Import Duties Explained: How They Work, Why They Exist, and Who Pays Them
Taxes on imported goods have been around for centuries, shaping how nations trade and protect their economies. Today, these taxes are known as import duties, sometimes referred to as customs duties, tariffs, or import taxes. They play a crucial role in international trade, affecting businesses, governments, and everyday consumers. Understanding how import duties function provides…
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Political Risk: How Politics Shapes Business and Investment
Every investment, no matter how carefully planned, carries an element of uncertainty. While some risks are tied to markets, interest rates, or creditworthiness, others emerge from the political environment itself. This is what is known as political risk—the chance that decisions, policies, or instability within a political system will disrupt economic activity or undermine business…
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Operational Risk Explained: Definition, Examples, and Modern Risk Management Strategies
Operational risk is one of the most significant yet often misunderstood aspects of financial and organizational management. Unlike market or credit risk, which are tied to deliberate investment decisions, operational risk arises from the simple fact that people, processes, and systems are not perfect. From human error and fraud to technological breakdowns and natural disasters,…
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Internal Auditors Should Review, Not Write, Company Policies—Here’s Why
Internal auditors are often viewed as the guardians of good governance, compliance, and accountability. Yet, despite the temptation to pull them into the process of drafting company policies, this role is one they should carefully avoid. Writing policies, while important, can blur the lines of responsibility and compromise the very independence that makes internal audit…