From a Different Viewpoint

It is a prevalent theory. A hooligan brokes local bakery's window, and everything happens. Some economists support that the that the broken window fallacy helps the economy to grow up. It might be true, but there is a problem that if we accept it rightly, then we have to condone when we understand that some stronger countries attack some weaker countries to create a new market. There are a few stages.  1- attack somewhere 2- destroy everything there 3- declare a ceasefire 4- make an agreement  5- improve a country's economy 6- send some companies there to develop the country again 7- start from the beginning Capitalism gets the world to participate in new world order to make more money for capitalists. It is a costly way, yet a perfect way.  Nowadays, technology is much better than 20 years ago, but new product goods are too flimsy. In the 1990s, people could use white goods for 15 years at least. Now people can use wh...

We have to ask that what developed country is. According to World Bank, a high-income economy is defined by World Bank as a country with a gross national income per capita $ 12,056 or more in 2017, calculated using the Atlas Method. While the term "high income" is often used with " First world" and "developed country", the technical definitions of these terms differ (World Bank,2018) Of course, the gross national income per capita is not really enough to demonstrate people's, who live in high-income countries, welfare level. Therefore, in economics, we use the Gini Coefficient to measure the distribution of income.  Gini Index The coefficient ranges from 0 to 1 with 0 representing perfect equality and 1 representing perfect inequality.  A country can have a high income, but it does not mean that in a country every single person gets the same living standard. Firstly, we have to check GDP per capita of countries and then we ought to...

Inside job is the documentary about the 2008 economic crisis. The documentary investigated that why nobody tried to stop the crisis before it happened.

In the world, lots of radical things are happening recently in developing countries which became more productive than ever during monetary easing such as Argentina, Brazil, Turkey. All of them got investment from investors who ran away from developed countries due to minus interest rate. The first time the purpose was to raise the inflation rate significantly in the market before falling under minus because the interest rate shows consumer perception which means if consumer perception demonstrates the central banks that consumer  behaviors  change for nonconsumption, then central banks start printing money for stopping decayed inflation rates. In 2008, a lot of central banks overprinted money again and again. The printing money leaked in developing countries as an investment. It is a fundamental economic theory in macroeconomics. If the interest rate is low to get credit, then people take some loans from banks to invest in countries, which offers the highest interest r...