My answer on Quora: Thinking at the margin! The principle here is that decisions are made when considering one step ahead. What impact will this extra move have on X? Will one more A result in B? What would it mean for my budget (or time) if I buy Y instead of X? This kind […]

My answer on Quora: When economic development is inclusive, the two can be thought to go hand in hand. This is largely because there is no precise definition of economic development. For example, take the Cambridge Dictionary’s definition: The process in which an economy grows or changes and becomes more advanced, especially when both economic and social […]

My answer on Quora: For a given country, you can find the actual breakdown of its government’s revenues in the Statement of Government Operations (p. 38, IMF). This is like the government’s income statement. Some governments might give it different names and some governments might be more transparent than others. A government’s revenues can be grouped into […]

My answer on Quora: It depends on the source of inflation. Interest rates impact borrowing/savings decisions and can also send a signal about the seriousness of the central bank (whose mandate typically includes some kind of price stability). If inflation shoots up because of a supply shock, then there may not be much interest rates […]

My answer on Quora: If we were to define class inequality as income inequality, then history tells us that it is indeed likely to change. The reasons for those changes is where the real story is. Branko Milanovic in his book Global Inequality presents two key factors that can reduce high levels of inequality: malign and benign factors. Malign factors lowered income inequality in the […]

My answer on Quora: Let’s define a world currency as a widely used currency for both international transactions and official reserves. An alternative interpretation would be a single currency for the whole world (see here for more on that). Direct benefits include very little exchange rate risk in international transactions, importing goods using your own […]

My answer on Quora: The structural factors of an economy are those that do not change with the economic cycle. There are structural factors and there are cyclical factors. Think of a trend vs. variations around that trend. Structural factors relate to the supply-side of the economy and cyclical factors relate to the demand-side. Structural factors include laws (like […]