General economics

A brief mathematical revision of the Ramsey Model

We mentioned in the last post the Solow-Swan model in order to explain the importance of the specification related to theories and the regression analysis. In this post, I’m going to explain a little bit more the neoclassical optimization related to consumption, in this case, it’s going to be fundamental to the theory of Ramsey …

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The evil in the heart of the good: Unfolding the role of remittances in the escalating trade deficit figures of the MENA region.

The MENA region is ranked first in terms of remittance receipts (3.83% of GDP) worldwide, it has also the highest non-oil trade deficit among other developing regions (World Bank, 2018). This study uses panel data from 11 Labor-abundant MENA countries (main destination of remittance receipts) to examine the trade balance effect of remittances. We postulate …

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Oil war: GCC stability Vs. EU stability

After the dramatic turmoils that took place in France and then have spread across other European countries. These turmoils were mainly triggered by the hikes in Oil prices in the last few months, These surges have caused rigorous supply shock to prices, causing thousands maybe million of Mid-class people in EU to struggle. Lives casts …

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The interaction between monetary and macroprudential policies

There is an increasing concern among policy makers and economists about macro prudential policies that aim to stabilize the economy and alleviate financial distortions through affecting output and inflation levels . This paper by Claessens, and Valencia, (2013) at VOX tries to study the possible interactions between monetary and macro prudential policies. In addition, it …

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What looks like a discount is not actually a discount

What is the goal of any firm,  store, mall, service provider or even a rocket factory? The answer is, either earning enough money(Accounting profit) to run the business, and cover operational costs (variable costs), or filling the stakeholder pocket’s with more profits (Economic profits), which include the accounting profit in its calculation and the opportunity …

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Anti-liberalizing policies for the Egyptian economy

People in Egypt demand, they indeed demand even during inflationary periods, i.e. see Carrefour at weekends; then you will realize what I am talking about. The problem in Egyptian economy is a supply-side problem, such problem can be summarized into lack of domestic production in quantity and quality, heavy imports (along with a depreciated currency …

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