Macroeconomics Archive

Supply and demand, what creates the other in the modern economy?

K. Marx believed in his time that “supply generates demand and conversely the supply determines the demand…”. The proposal creates demand through the assortment of produced goods and their prices. In turn, demand determines the volume and structure of product offerings, as they produce only what is recognized by the consumer. How do supply and

The monetary methods of economic regulations in the USA

Before talking about the problem of economic methods of regulation of monetary policy, let’s consider the “painful issue” for all monetary authorities, it’s the question of increasing of inflationary pressure. Let’s begin with simple definition: inflation is the increase of prices of goods and services. This is one of the most important factors that is

London is a global financial centre

The banking sector is the foundation of the economy of England The peculiarity of London as an international financial center is due to the uniqueness of economic development in the UK. After all, during the years of the existence of British Empire London was the industrial and financial capital of the world and the pound

Big Mac Index and fair wages

In 1986, the American magazine “The Economist” suggested method for determining purchasing power parity, which was named “Indnek Big Mac”. In a nutshell, the theory of purchasing power based on a certain basket of goods, it is possible to calculate the real exchange rate of currencies of different countries to the US dollar. As a