The Secret Sauce of the German Economy

A few weeks ago a new episode of the famous podcast of Freakonomics dealt with an extremely interesting question—what makes the German economy so successful? Freakonomics is an American podcast and dealt with the issue from an American point of view. It raised certain issues, such as identifying the secrets of the German economy and discussing whether or not America should steal some of them (or copy them). First of all, what are the secrets of the German economy?

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The Goldilocks Economy

Goldilocks and the Three Bears is not only a fairy tale but also a term used to describe the state of the global economy today. A Goldilocks economy is an economy that is somewhere between the tides—not too high and not too low—and that is what makes it sustainable. How can the economy remain in this Goldilocks position? Growth—first, the economy needs to grow but at a moderate pace so as not to become overheated, which can affect the second point—relatively low inflation.

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Big Mac or Le Big Mac?

The Big Mac index is a periodic survey made by The Economist to measure purchasing power parity between countries. It uses local Big Mac prices as the benchmark. The index was first introduced in 1986, and while it was a convenient way for the general public to understand the topic of purchasing power parity, its results were limited and unreliable. Purchasing Power Parity (PPP) According to economic theory (though it’s not a consensus), the exchange rate between two currencies is equal to the ratio

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Will the new Chairman of the Federal Reserve change anything?

No. But that’s only the short answer. Donald Trump has picked the new chair of the Federal Reserve, one of the most prestigious and significant positions in the economic world. The happy winner is Jerome Powell, who has been a member of the Federal Reserve Board of Governors since 2012. Powell is considered to be a “monetary dove.” Such people are generally more in favor of the expansionary monetary policy, including low-interest rates, while hawks are inclined to favor a tight monetary

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Why is it So Easy to Beat Wall Street Expectations?

Last Friday was one of the best days for capital markets in recent years and especially so for those holding some tech stocks, which gained the most. The Nasdaq 100 rose by almost 3%, led by technology juggernauts, such as Amazon, Google, Microsoft, and Intel. All of them beat the “Street Expectation,” which is a term used to describe the average estimate for a company’s quarterly revenues, earnings, and other important financial data that a public company has to report

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