Consider a market for second hand cars where the sellers are usually more informed about the quality of the car and its various features than the buyers. The car can either be a “lemon” (bad quality second-hand cars) or a “peach” (good quality second-hand cars) and assume that the buyer […]
Should Governments Worry about Public Debt
Published on :“The boom, not the slump, is the right time for austerity.” – John Maynard Keynes Should fiscal policymakers try to reduce government debt? As with many of the debates surrounding Macroeconomics, there is no consensus among the different economists regarding this question. The proponents of reducing government debt argue that […]
A Note on Trade Wars and Its Nuances
Published on :As we are aware of, the United States and China have been locked in a trade war since the beginning of this year, with the first tariffs being imposed on solar panels to the tune of 30% by the United States, and China imposing 25% tariff on cars, airplanes, soybeans […]