Accuracy of Economic Projections

The current year is about to end, and economic papers are full of predictions for 2018. In general, most are pretty good. The world economy is in the midst of a mini-boom, and most economies are growing fast but not too fast. Unemployment is relatively low, and the inflammatory pressures are being held in check. The growth in GDP has accelerated lately, and the latest forecast of the International Monetary Fund for global growth is 3.6% for 2017 and 3.7%

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Have I Changed My Mind About Bitcoin?

Well, no, why would I? What has changed fundamentally about Bitcoin? When I wrote a post about cryptocurrencies four months ago, the price of bitcoin was $2,400. Now it’s $11,000, but does it change anything in my thesis? Absolutely not. The risks of the bitcoin are still too high to be considered negligible, and the price of bitcoin is still on a roller-coaster that no one knows when or how it will reach its last stop. The only thing that

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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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