My answer on Quora: The economy can be thought of as a system of exchanges of goods and services among people and organizations (private or public). The money and price system are there to facilitate these exchanges and provide a common unit of value to different goods and services. Traditionally, economics can be thought of […]

My answer on Quora: There is a distinction between welfare and output in economics. Gross Domestic Product (GDP) is a measure of how much an economy produces in a given period of time. This can typically be done by looking at aggregate expenditures, income, or value-add throughout the production process. It does not measure welfare or well-being, and by definition, is […]

My answer on Quora: Sometimes it is easy to distinguish economic from non-economic activity, like buying a T-shirt vs. swimming in a lake. Other times, it is not so clear. For example, is the activity of Quora users considered economic? Users exchange a lot of information free of charge, and Quora is a very valuable […]

My answer on Quora: Let’s begin with a narrow view, then zoom out. With a very narrow view, I can think of an example or two, but they don’t amount to much. In the end, there is no durable example of something that is good for the economy but not good for the broad majority […]

My answer on Quora: This is the question of our time, and of past times as well. I do not have an answer for our time, but the 20th century has an answer for the last time this question dominated society – at the onset of the industrial revolutions of the 18th century (in the […]

My answer on Quora: One of the most telling and paradoxical events in the world of finance happened when Standard & Poor’s downgraded US government bonds in August 2011 for the first time ever. Instead of investors reducing their demand for a bond that is now deemed by a leading credit rating agency as riskier than previously […]

My answer on Quora: The credibility of central bank plays a strong role in its ability to achieve its objectives, which often includes price stability (i.e. stable inflation around a desired target). If a central bank lacks credibility, investors and firms won’t have much confidence in the central banks ability to keep inflation around its […]