Economics

Twenty Years After the Fall

By George Friedman We are now at the 20th anniversary of the fall of the Berlin Wall and the beginning of the collapse of the Soviet empire in Eastern Europe. We are also nearing the 18th anniversary of the fall of the Soviet Union itself. This is more than simply a moment for reflection — it

Efficient Market Hypothesis

Efficient Market Hypothesis maintains that prices move in a random fashion  around the intrinsic value of the underlying asset. According to the efficient market hypothesis, the optimal trading strategy is to buy and hold, rather than trying to time market movements through technical analysis. See

Efficient Market

In economic theory, an efficient market is one in which market prices adjust rapidly to reflect new information. The degree to which the market is efficient depends on the quality of information reflected in market prices. In an efficient market, profitable arbitr

Kondratieff Theory

Kondratieff Theory states that capitalist economies display long wave cycles of economic activity ranging between 50-60 years in length. The Kondratieff wave cycle goes through four distinct phases of beneficial inflation, stagflation, beneficial deflation, and deflation.

Keynesian Economics

An economic theory based on the ideas of British economist John Maynard Keynes (1883-1946). Keynesian economics promotes an economy where active government intervention ensures economic growth and stability.

Inflation

Inflation refers to the rate at which the general level of prices for goods and services in an economy is rising. Inflation is measured by the Consumer Price Index and the Producer Price Index. As the cost of goods and services increases, the value of a currency f

Hyperinflation

Hyperinflation refers to an extremely rapid rate of inflation, typically seen only in periods of dramatic political instability. Germany during the 1930′s experienced a notable example of hyperinflation. During such periods, tangible material assets become highly sought after as an alternative

Absolute Advantage Theory

The theory that trade occurs when one country, individual, company, or region is absolutely more productive than another entity in the production of a good. A person, company or country has an absolute advantage if its output per unit of input of all goods and services produced is higher than that o