No More Leaded Gasoline Use on Roads

CNN: Cars have been guzzling leaded gasoline for 99 years. Not any more Article published: 30 Aug,  2021 IB Economics syllabus: Microeconomics (market failure, negative externality, government intervention) The United Nations Environment Programme (UNEP) has announced that leaded gasoline for use on roads is finally banned worldwide. This comes with the Algeria being the [...]

By |2021-09-13T13:16:47+00:00September 20th, 2021|Micro|Comments Off on No More Leaded Gasoline Use on Roads

Speed Limit Set at 30km/h in Paris

BBC: Paris speed limit falls to 30km/h Article published: 30 Aug,  2021 IB Economics syllabus: Microeconomics (market failure, externalities, government intervention) The speed limit has been reduced to 30km/h in most of Paris among other French cities in an attempt to reduce "accidents, and reduce noise and pollution." This is a great article to [...]

By |2021-09-08T13:15:50+00:00September 17th, 2021|Micro|Comments Off on Speed Limit Set at 30km/h in Paris

South Korean Central Bank Raises Interest Rates for the First Time in Three Years

Reuters: S.Korea lifts interest rates from record low as debt threats grow Article published: 26 Aug,  2021 IB Economics syllabus: Macroeconomics (contractionary monetary policy) As inflation is picking up and economic growth recovered after the pandemic, much due to increased export revenues, the Central Bank of South Korea is afraid its economy will overheat. [...]

By |2021-09-08T12:55:24+00:00September 15th, 2021|Macro|Comments Off on South Korean Central Bank Raises Interest Rates for the First Time in Three Years

Rent Control Leads to Shortage in Sweden

BBC: Why rent control isn’t working in Sweden Article published: 27 Aug,  2021 IB Economics syllabus: Microeconomics (government intervention, price control, maximum prices) It seems that rent control doesn't really work in Sweden, where the inevitable shortage now leads to an "average waiting time for a rent-controlled property [of] nine years" in Stokholm. Intervention would [...]

By |2021-09-08T12:14:57+00:00September 13th, 2021|Micro|Comments Off on Rent Control Leads to Shortage in Sweden

US Inflation Forecast Doubled by White House

The Wall Street Journal: White House More Than Doubles Its Inflation Forecast in New Update Article published: 27 Aug,  2021 IB Economics syllabus: Macroeconomics (inflation, monetary policy) Inflation is reaching its highest levels in over 10 years in the United States. As a result, the government (White House) has increased its consumer price index [...]

By |2021-09-08T11:46:16+00:00September 10th, 2021|Macro|Comments Off on US Inflation Forecast Doubled by White House

Global Chip Shortage Hurts Car Manufacturers

CNBC: Major automakers fear the global chip shortage could persist for some time Article published: 6 Sep,  2021 IB Economics syllabus: Microeconomics (demand and supply, shortage) Partly due to coronavirus, many factories producing semiconductors have shut down in Malaysia. This has led to a huge shortage of chips, using silicon and consequantly has negatively affected [...]

By |2021-09-08T09:51:25+00:00September 8th, 2021|Micro|Comments Off on Global Chip Shortage Hurts Car Manufacturers

Milkshake Shortage in the UK

BBC: McDonald's runs out of milkshakes in England, Scotland and Wales Article published: 24 August,  2021 IB Economics syllabus: Microeconomics (demand and supply, shortage) Due to a shortage of truck drivers, milkshakes and bottled drinks are unavailable in as much as 1250 McDonald's outlets across the UK. Thus, due to the lower availability of [...]

By |2021-09-01T19:38:42+00:00September 1st, 2021|Micro|Comments Off on Milkshake Shortage in the UK

UK Exports in Free Fall post-Brexit

food and drink federation: UK-EU Food and Drink Trade Snapshot: January 2021 Report published: February,  2021 IB Economics syllabus: International economics (international trade) While this is not a suitable article for your commentaries, it provides an interesting snapshot into the UK-EU trade numbers for January 2021. On a year-on-year basis, UK exports to the [...]

By |2021-04-23T16:04:51+00:00April 13th, 2021|International Economics|Comments Off on UK Exports in Free Fall post-Brexit

Overfishing: Market Failure at its Best

BBC: Extinction: Freshwater fish in 'catastrophic' decline Article published: February 23,  2021 IB Economics syllabus: Microeconomics (market failure, common pool resources, sustainability) "A "catastrophic" decline in freshwater fish" is caused by the fact that all over the world they are a good (and sad) example of a common pool resource. This is because they [...]

By |2021-03-20T16:59:22+00:00March 20th, 2021|Micro|Comments Off on Overfishing: Market Failure at its Best

President Biden’s $1.9 trillion stimulus package

CNBC: Biden signs $1.9 trillion Covid relief bill, clearing way for stimulus checks, vaccine aid Article published: March 11,  2021 IB Economics syllabus: Macroeconomics (Expnasionary fiscal policy, multiplier) Biden's Covid relief bill is mostly made up of transfer payments ($1400 in direct payments to most Americans, $300 per week unemployment benefits). Transfer payments themselves [...]

By |2021-09-01T19:32:57+00:00March 16th, 2021|Macro|Comments Off on President Biden’s $1.9 trillion stimulus package

Tariffs on EU Cognac by the US as Trade War Escalates

BBC: Cognac targeted with tariffs in US-EU trade row Article published: December 31,  2020 IB Economics syllabus: International Economics (trade protection, tariffs) As the trade war between the US and the EU goes on, European cognac gets hit by new tariffs. This is yet another step in the ongoing battle about their aircraft manufacturers, Boeing and Airbus, [...]

By |2021-01-28T10:50:18+00:00January 28th, 2021|International Economics|Comments Off on Tariffs on EU Cognac by the US as Trade War Escalates

RCEP: Regional Comprehensive Economic Partnership

BBC: What is the Regional Comprehensive Economic Partnership (RCEP)? Article published: November 16,  2020 IB Economics syllabus: International Economics (economic integration) With "29% of global gross domestic product" produced in the nations which signed the RCEP, the trade agreement has generated the largest ever trading bloc. "It includes the 10 members of the Association of Southeast Asian [...]

By |2020-11-19T20:28:05+00:00November 19th, 2020|International Economics|Comments Off on RCEP: Regional Comprehensive Economic Partnership

Tariffs eliminated on Canadian aluminum in US

Reuters: Trump lifts tariffs on Canadian aluminum, warns he may resume them Article published: October 27,  2020 IB Economics syllabus: International Economics (trade protection, tariffs) Trump eliminated the 10% tariffs the US had against Canadian aluminum imports, but the President warned that the tariffs may be put back in place should imports increase a lot. This [...]

By |2020-11-15T17:22:58+00:00November 15th, 2020|International Economics|Comments Off on Tariffs eliminated on Canadian aluminum in US

100 Nudge Case Studies and Research Papers

A Database of 100 Nudge Case Studies and Research Papers⚡ IB Economics syllabus (first assessment 2022): Microeconomics (Behavioural economics in action - HL only) Here's a head-up to all new students (exams in 2022): the link at the top will take you to 100 cases from real-life about how nudges can be applied to change [...]

By |2020-11-01T21:12:18+00:00November 1st, 2020|General|Comments Off on 100 Nudge Case Studies and Research Papers

Largest ever U.S. fiscal stimulus package

Business Insider: Trump signs the $2 trillion coronavirus economic relief bill into law, which includes checks for Americans and business loans Article published: March 23, 2020 IB Economics syllabus: Macroeconomics (expansionary fiscal policy) Trump signed the largest ever economic stimulus package (expansionary fiscal policy) of American history to fight the recession caused by the coronavirus. Source of [...]

By |2020-04-07T06:43:49+00:00April 7th, 2020|Macro|Comments Off on Largest ever U.S. fiscal stimulus package

Unlimited bond-buying program in the U.S.

CNN: Fed takes emergency action to stave off a depression Article published: March 23, 2020 IB Economics syllabus: Macroeconomics (expansionary monetary policy) In an effort to "prevent the health crisis from turning into a full-blown financial crisis" the U.S. central bank (the Fed) has announced an unlimited bond-buying program, also known as an "open-ended quantitative easing." This [...]

By |2020-04-07T06:44:20+00:00March 25th, 2020|Macro|Comments Off on Unlimited bond-buying program in the U.S.

Public transport made free in Luxembourg

CNN: Luxembourg makes all public transport free Article published: March 2, 2020 IB Economics syllabus: Microeconomics (positive externality of consumption, government intervention) This article talks about public transport becoming completely free in all of Luxembourg. This is because the richest country of the EU can afford to absorb the costs of public transport as they believe that [...]

By |2020-03-05T13:00:59+00:00March 5th, 2020|Micro|Comments Off on Public transport made free in Luxembourg

Surprise rate cut by the Fed

CNN: The Fed just hit the coronavirus panic button Article published: March 3, 2020 IB Economics syllabus: Macroeconomics (expansionary monetary policy) It seems like the coronavirus has effects other than on hockey sticks, in fact now the Fed (the U.S. Central Bank) has also reacted to it. In fears of a fall in economic growth (not to [...]

By |2020-03-04T09:38:43+00:00March 3rd, 2020|Macro|Comments Off on Surprise rate cut by the Fed

Only electric cars to be sold in the UK by 2035

BBC: The UK just gave the car industry 15 years to ditch fossil fuels Article published: Feb 4, 2020 IB Economics syllabus: Microeconomics (market failure, externalities of consumption) The UK government has decided to ban the sale of all new cars that burn fossil fuels by 2030 in a bid to reach net zero carbon emissions by [...]

By |2020-02-21T15:52:14+00:00February 21st, 2020|Micro|Comments Off on Only electric cars to be sold in the UK by 2035

Chinese Central Bank cuts interest rates

Bloomberg: PBOC Cuts Interest Rate for One Year Loans to Support Banks Article published: Feb 17, 2020 IB Economics syllabus: Macroeconomics (expansionary monetary policy) Due to the negative effects of the coronavirus on the Chinese economy, the Central Bank of China has decided to cut its interest rates. More specifically, they have cut the interest rates to [...]

By |2020-02-17T15:58:34+00:00February 17th, 2020|Macro|Comments Off on Chinese Central Bank cuts interest rates

Coronavirus and the hockey stick shortage

CBS Sports: How the coronavirus is creating an NHL stick shortage Article published: Feb 11, 2020 IB Economics syllabus: Microeconomics (demand and supply, market equilibrium, shortage) This is an interesting article about how the infamous coronavirus can lead to a lack of supply of hockey sticks in North America. Interestingly, as most of the hockey sticks are [...]

By |2020-02-12T22:44:52+00:00February 12th, 2020|Micro|Comments Off on Coronavirus and the hockey stick shortage

Surprise rate hike of the Czech Central Bank

Bloomberg: World Gets First Rate Hike of 2020 With Surprise Czech Move Article published: Feb 6, 2020 IB Economics syllabus: Macroeconomics, International economics (monetary policy, exchange rates) The first Central Bank to increase interest rates was the Czech National Bank - and the move surprised the markets as no one was expecting a rate hike. As a [...]

By |2020-02-10T10:25:37+00:00February 10th, 2020|International Economics, Macro|Comments Off on Surprise rate hike of the Czech Central Bank

Committee on Climate Change: meat and dairy consumption must be cut by a fifth

BBC: Cut meat and dairy intake 'by a fifth', report urges Article published: Jan 23, 2020 IB Economics syllabus: Microeconomics (market failure: threats to sustainability) According to the latest report by the Committee on Climate Change of the UK, "people should cut the amount of beef, lamb and dairy produce they eat by a fifth to combat climate [...]

By |2020-02-08T23:03:28+00:00February 8th, 2020|Micro|Comments Off on Committee on Climate Change: meat and dairy consumption must be cut by a fifth

Chinese Central Bank to increase money supply by $174 billion

South China Morning Post: China to inject US$174 billion of liquidity into markets amid new coronavirus outbreak Article published: Feb 2, 2020 IB Economics syllabus: Macroeconomics (monetary policy) As part of the open market operations, the Chinese Central Bank, called the The People's Bank of China has decided to increase the money supply. They do so by the [...]

By |2020-02-06T16:10:06+00:00February 6th, 2020|Macro|Comments Off on Chinese Central Bank to increase money supply by $174 billion

When “going green” kills – the hidden costs of denuclearizing Germany

Wired: Germany Rejected Nuclear Power—and Deadly Emissions Spiked Article published: Jan 23, 2020 IB Economics syllabus: Microeconomics, (market failure, negative externalities of production, sustainability) The social costs of "going green": it was believed that shutting down nuclear power plants in Germany is a step forward to sustainability. However, a recent study shows that this has led [...]

By |2020-02-06T15:34:42+00:00February 3rd, 2020|Micro|Comments Off on When “going green” kills – the hidden costs of denuclearizing Germany

The Global Risks Report 2020

World Economic Forum: The Global Risks Report 2020 Article published: Jan, 2020 IB Economics syllabus: Microeconomics, Macroeconomics, International Economics, Development Economics (market failure, negative externalities of production, sustainability, equity in the income distribution, economic development) One week before the World Economic Forum in Davos, the Organization published their Annual Risk Report, in which experts analyze the threats facing [...]

By |2020-01-30T14:13:53+00:00January 30th, 2020|Development Economics|Comments Off on The Global Risks Report 2020

New York Times article on global air pollution and the fight against it

The New York Times: See How the World’s Most Polluted Air Compares With Your City’s Article published: Dec 2, 2019 IB Economics syllabus: Microeconomics (market failure, negative externalities of production, sustainability, equity in the income distribution, economic development) This is a fantastic and interactive article about air pollution - a global problem. As such, it touches upon [...]

By |2020-01-20T09:42:36+00:00January 20th, 2020|Micro|Comments Off on New York Times article on global air pollution and the fight against it

How (not to) change people’s commuting behavior

Harvard Business Review: Why It’s So Hard to Change People’s Commuting Behavior Article published: Dec 24, 2019 IB Economics syllabus: Microeconomics (negative externalities of consumption - solutions) A great article from the Harvard Business Review about how to change people's commuting behavior. This is not really suitable for a microeconomics IA, as it is not about a [...]

By |2020-01-14T23:05:43+00:00January 14th, 2020|Micro|Comments Off on How (not to) change people’s commuting behavior

Booking.com promises to change deceptive offers

Bloomberg: Booking.com agrees to EU demands to change travel offers Article published: Dec 20, 2019 IB Economics syllabus: Microeconomics (theory of the firm, monopoly power) This article shows how one of the largest European travel fare aggregagator website uses aggressive and not too fair tactics to make users book reservations through their website. More specifically, the article [...]

By |2019-12-31T07:28:57+00:00December 31st, 2019|Micro|Comments Off on Booking.com promises to change deceptive offers

A letter that saved lives

The New York Times: The I.R.S. Sent a Letter to 3.9 Million People. It Saved Some of Their Lives. Article published: Dec 10, 2019 IB Economics syllabus: microeconomics (government intervention, nudge economics) While this article is not suitable for an IB economics IA (partly because it's too long, and partly due to the topic it covers), [...]

By |2019-12-30T15:13:53+00:00December 30th, 2019|Micro|Comments Off on A letter that saved lives

Global debt in one infographic

The Visual Capitalist: $69 Trillion of World Debt in One Infographic Article published: Nov 14, 2019 IB Economics syllabus: macroeconomics (the government budget, public debt), development economics (international debt) While this is not an article for your Internal Assessment, it's a great visualization of all the $69 trillion of world debt that exists currently (as of late [...]

By |2019-12-27T13:58:37+00:00December 27th, 2019|Development Economics, Macro|Comments Off on Global debt in one infographic

Cobalt production leads to 10,000 families losing their homes in DR Congo

The North Africa Post: DR Congo to relocate 10,000 families from cobalt-rich region Article published: Dec 18, 2019 IB Economics syllabus: microeconomics (negative externalities of production) Authorities in the Democratic Republic of Congo plan to relocate 10,000 families from a town which is rich in cobalt. This is due to the fact that the resource is worth [...]

By |2019-12-27T13:58:56+00:00December 21st, 2019|Micro|Comments Off on Cobalt production leads to 10,000 families losing their homes in DR Congo

British pound appreciates as Boris Johnson wins UK election

The Wall Street Journal: British Pound Surges as Johnson’s Conservatives Win U.K. Election Article published: Dec 13, 2019 IB Economics syllabus: International economics (exchange rates) "The pound surged to its highest level since May 2018, hitting $1.3515." This is due to the fact that the Conservatives, led by Boris Johnson, have won the election in the UK [...]

By |2019-12-18T12:56:48+00:00December 18th, 2019|International Economics|Comments Off on British pound appreciates as Boris Johnson wins UK election

Humanitarian aid for Venezuelans by the UN

UN News: ‘Everyone needs to do more’ to help suffering Venezuelans, says UN Emergency Relief Coordinator Article published: Nov 6, 2019 IB Economics syllabus: Development economics (foreign aid, humanitarian aid) A very unfortunate real-world example of when economic growth does not lead to economic development: Venezuela, which used to be the richest Latin American country [...]

By |2019-12-16T21:49:00+00:00December 17th, 2019|Development Economics|Comments Off on Humanitarian aid for Venezuelans by the UN

No water available in Australian school

The Guardian: Queensland school runs out of water as commercial bottlers harvest local supplies Article published: Dec 12, 2019 IB Economics syllabus: Microeconomics (demand & supply, market failure, sustainability) "The Tamborine Mountain state school has run out of water, even as water miners in the Gold Coast hinterland are sending millions of litres to commercial bottling [...]

By |2019-12-16T19:58:36+00:00December 16th, 2019|Micro|Comments Off on No water available in Australian school

EU introduces tariffs on Chinese steel road wheels

Bloomberg: China Hit by EU Tariffs as High as 66% Article published: Oct 10, 2019 IB Economics syllabus: International economics (protectionism, tariffs) This is a superb article for an international economics IA. The EU steel road wheel producers accused their Chinese competitors of dumping (selling below their costs of production). Chinese producers are able to sell at [...]

By |2019-10-24T07:22:09+00:00October 24th, 2019|International Economics|Comments Off on EU introduces tariffs on Chinese steel road wheels

India cuts business taxes

BBC: India delivers surprise corporate tax cuts to boost economy Article published: Sep 20, 2019 IB Economics syllabus: Macroeconomics (expansionary fiscal policy, supply-side policy) A great article if you'd like to write about expansionary fiscal policy for your macroeconomic commentary. The Indian government has announced huge corporate (business) tax cuts in order to boost investment (and hence [...]

By |2019-10-09T09:55:28+00:00October 9th, 2019|Macro|Comments Off on India cuts business taxes

Fed cut rates again

CNBC: Fed approves quarter-point rate cut but is divided on further action this year Article published: Sep 18, 2019 IB Economics syllabus: Macroeconomics (monetary policy) The FED (U.S. Central Bank) has cut the interest rates again by 0.25%. “The implications of global developments for the economic outlook as well as muted inflation pressures" were given as the [...]

By |2019-09-30T21:21:05+00:00September 30th, 2019|Macro|Comments Off on Fed cut rates again

India bans e-cigarettes

CNN: India is banning all e-cigarettes over fears about youth vaping Article published: Sep 18, 2019 IB Economics syllabus: Microeconomics (negative externality of consumption, government intervention) India has completely banned all e-cigarettes in the hope to cut all the adverse health issues associated with them. While smoking is usually shown by a negative consumption externality diagram, an [...]

By |2019-09-28T11:38:07+00:00September 28th, 2019|Micro|Comments Off on India bans e-cigarettes

Price of rice in Japan – Planet Money podcast

Planet money: The Price Of Rice In Japan IB Economics syllabus: Microeconomics (demand and supply, non-price determinants) This interesting short podcast is about the market of rice in Japan, and how it has changed over the past decades. It answers an exciting question: how on earth does the price of rice keep going up even if [...]

By |2019-09-19T11:59:25+00:00September 19th, 2019|Micro|Comments Off on Price of rice in Japan – Planet Money podcast

ECB cut interest rates further into the negative

Sky News: European Central Bank cuts interest rates for first time since 2016 Article published: Sep 12, 2019 IB Economics syllabus: Macroeconomics (expansionary monetary policy) The European Central Bank (ECB) cut its interest rates to an all-time-low of -0.5% and announced a bond buying program (basicall pouring money into the Eurozone) at a rate of €20 [...]

By |2019-09-14T06:21:28+00:00September 14th, 2019|Macro|Comments Off on ECB cut interest rates further into the negative

China eager to boost economic growth – but will it manage?

Bloomberg: China’s Stimulus Debate Is Still Alive After Grim Trade Data Can't open the article? Check this link. Article published: Sep 8, 2019 IB Economics syllabus: Macroeconomics (expansionary monetary and fiscal policy) China is desperate to keep economic growth above 6% and it is having a hard time doing so mostly due to the ongoing trade [...]

By |2019-09-11T12:56:55+00:00September 11th, 2019|Macro|Comments Off on China eager to boost economic growth – but will it manage?

British Pound hits the lowest level in 3 years against the dollar

BBC: Pound hits three-year dollar low in Brexit turmoil Article published: Sep 2, 2019 IB Economics syllabus: International economics (exchange rates) No-deal Brexit is becoming a likely scenario for the United Kingdom to leave the EU and if it becomes reality, only one thing will be certain: uncertainty. But, as the article mentions, "[c]urrencies, as a rule, [...]

By |2019-09-03T09:24:27+00:00September 3rd, 2019|International Economics|Comments Off on British Pound hits the lowest level in 3 years against the dollar

Say hello to the ‘cheap money bubble’

CNN: Central bank rate cuts are inflating a cheap money bubble Article published: Aug 12, 2019 IB Economics syllabus: Macroeconomics (monetary policy) NOTE! This article is an opinion itself, that is, it is a "commentary" about the latest developments in global monetary. Therefore, it is not really suitable for an IB Economics IA, but it is [...]

By |2019-08-26T19:09:35+00:00August 26th, 2019|Macro|Comments Off on Say hello to the ‘cheap money bubble’

Can central banks further boost their economies?

CNN: Can the world's central banks save the bull market? Article published: Aug 18, 2019 IB Economics syllabus: Macroeconomics (monetary policy) NOTE! This article is not really suitable for an Economics Internal Assessment (commentary) as its focus is not a single economy. Yet, it gives insight into the most important current events that affect the global economy, such [...]

By |2019-08-26T19:06:02+00:00August 19th, 2019|Macro|Comments Off on Can central banks further boost their economies?

India, Thailand and New Zealand follow U.S. by cutting interest rates

The New York Times: 3 Countries Cut Rates as World Braces for More Trade War TurbulenceThe Fed cut rates for the first time since 2008 Article published: Aug 7, 2019 IB Economics syllabus: Macroeconomics (monetary policy) Amid fears from a global economic slowdown, the central banks of India, Thailand and New Zealand have cut their interest rates [...]

By |2019-08-19T07:06:51+00:00August 10th, 2019|Macro|Comments Off on India, Thailand and New Zealand follow U.S. by cutting interest rates

Interest rate cut in the U.S. for the first time in over 10 years

CNN: The Fed cut rates for the first time since 2008 Article published: July 31, 2019 IB Economics syllabus: Macroeconomics (monetary policy) EXTREMELY IMPORTANT! This has been the first time since 2008 that the Fed (U.S. Central Bank) has cut interest rates. This is a form of expansionary fiscal policy which is carried out in order [...]

By |2019-08-02T15:11:07+00:00August 2nd, 2019|Macro|Comments Off on Interest rate cut in the U.S. for the first time in over 10 years

No-deal Brexit and recession go hand in hand

CNN: UK will plunge into recession if it leaves Europe without a Brexit deal Article published: July 19, 2019 IB Economics syllabus: Macroeconomics (economic growth, recession) The UK's new prime minister, Boris Johnson is determined to carry out Brexit in October, even if he cannot get a better deal from the EU. Brexit without a deal would [...]

By |2019-07-22T21:31:38+00:00July 22nd, 2019|Macro|Comments Off on No-deal Brexit and recession go hand in hand

Tariffs increased on Chinese imports in US

Bloomberg: U.S., China Lack Deal But Avoid Rupture After Tariff Hike Article published: May 10, 2019 IB Economics syllabus: International economics (international trade, protectionism, tariffs) NOTE: This article is a little bit long, make sure that you (1) fit it into two pages and (2) that you highlight the parts that you are commenting on. Why is [...]

By |2019-05-10T20:09:55+00:00May 10th, 2019|International Economics|Comments Off on Tariffs increased on Chinese imports in US

Central Bank independence in United States

CNBC: Federal Reserve fends off efforts to be politicized by President Trump, for now Article published: May 2, 2019 IB Economics syllabus: Macroeconomics (central bank independence, monetary policy) NOTE: I don't recommend this as an IB economics commentary article as it is too long, and there is no specific policy action discussed, but it is a great one [...]

By |2019-05-04T09:22:16+00:00May 4th, 2019|Macro|Comments Off on Central Bank independence in United States

Trump’s view on strong dollar

Reuters: Trump says strong dollar hurting U.S. competitiveness Article published: March 2, 2019 IB Economics syllabus: International economics (central bank policy, exchange rates) Trump is openly against further monetary tightening (raising interest rates) and hints that the strong dollar can reduce export competitiveness: “I want a strong dollar, but I want a dollar that’s great for our country [...]

By |2019-03-03T13:41:20+00:00March 3rd, 2019|International Economics|Comments Off on Trump’s view on strong dollar

EU-Japan Trade Agreement

  Reuters: EU-Japan free trade deal cleared for early 2019 start Article published: December 12, 2018 IB Economics syllabus: International economics (economic integration) "The European Union and Japan will launch the world’s largest free trade zone early next year after their economic partnership cleared a final hurdle on Wednesday." Source of image: REUTERS/Yves Herman Do you [...]

By |2019-02-12T22:48:42+00:00February 12th, 2019|International Economics|Comments Off on EU-Japan Trade Agreement

Amazon and Walmart restricted in India

  CNN Business: India just made life tougher for Amazon and Walmart Article published: December 27, 2018 IB Economics syllabus: International economics (trade barriers, protectionism) In order to cut back the influence of large American firms such as Amazon and Walmart, India is now set to restrict foreign e-commerce companies. This is good news for domestic [...]

By |2019-01-02T15:57:38+00:00January 2nd, 2019|International Economics|Comments Off on Amazon and Walmart restricted in India

FED raised interest rates

  The Guardian: Federal Reserve raises interest rates despite pressure from Trump Article published: December 19, 2018 IB Economics syllabus: Macroeconomics (monetary policy) The Federal Reserve (Central Bank of the United States) has increased the interest rates for the 5th time this year. According to the chairman, the U.S. is a healthy economy and there is [...]

By |2018-12-20T17:02:36+00:00December 20th, 2018|Macro|Comments Off on FED raised interest rates

Tariffs cut on U.S. car imports into China

  CNN Business: China is temporarily slashing tariffs on US auto imports Article published: December 15, 2018 IB Economics syllabus: International economics (protectionism, tariffs) After placing additional tariffs on cars in July, China has now decided to reduce these tariffs on a temporary basis for the next three months. The decision was made in order [...]

By |2018-12-17T06:02:24+00:00December 17th, 2018|International Economics|Comments Off on Tariffs cut on U.S. car imports into China

Brazil interest rate cut

Reuters: Brazil cuts rates to all-time low, signals more easing ahead Article published: March 21, 2018 IB Economics syllabus: Macroeconomics (monetary policy) Brazil has cut its interest rates to record low in order to boost inflation and AD during a slow recovery after a deep recession. A clear real-life example of easy (expansionary) monetary policy. [...]

By |2018-11-26T05:16:06+00:00November 26th, 2018|Macro|0 Comments

How tariffs can divert trade

Reuters: Shut out of China, U.S. coal exporters find favour in India Article published: Nov 20, 2018 IB Economics syllabus: International economics (protectionism, trade) This article talks about how the higher tariffs in China made American coal producers sell coal in other countries (e.g. India) instead of China. This is a real-life example of trade diversion. [...]

By |2018-11-26T05:16:42+00:00November 21st, 2018|International Economics|Comments Off on How tariffs can divert trade

Better wait with further interest rate hikes?

Reuters: For Fed, sell-off could point to fading Trump stimulus Article published: Oct 23, 2018 IB Economics syllabus: Macroeconomics  (economic growth, monetary policy) The Fed (Central Bank of the United States) is in the process of increasing interest rates. This is definitely necessary as the U.S. economy is getting close to overheating, expanding "at an annualized [...]

By |2018-11-21T06:14:49+00:00October 24th, 2018|Macro|Comments Off on Better wait with further interest rate hikes?

Turkey Interest Rate Hike

BBC: Turkey raises interest rates to 24% in new bid to boost lira Article published: Sep 13, 2018 IB Economics syllabus: Macroeconomics, International economics (monetary policy, exchange rates) While President Erdogan described himself as an "enemy of interest rates", finally the Central Bank of Turkey has made the move to significantly increase the interst rates in order [...]

By |2018-10-24T04:39:46+00:00September 14th, 2018|International Economics, Macro|Comments Off on Turkey Interest Rate Hike

Calorie Reduction Plan in England

BBC: Calories in popular foods must be cut, say health officials Article published: Aug 18, 2017 – out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Microeconomics (market failure, negative externalitites) Public Health England plans to introduce targets to cut the current level of calories in popular foods. Following the reductions of [...]

By |2018-10-25T04:12:02+00:00August 23rd, 2017|Micro|Comments Off on Calorie Reduction Plan in England

Know Macroeconomics and Become a Billionaire

Warning! This article is not suitable for a commentary (it's just very interesting). Priceonomics: The Trade of the Century: When George Soros Broke the British Pound IB Economics syllabus: Macroeconomics (exchange rates) This is a superb article that explains in detail how a managed exchange rate works in real life (with all its downsides) [...]

By |2018-10-25T04:12:23+00:00August 23rd, 2017|Macro|Comments Off on Know Macroeconomics and Become a Billionaire

IMF says that India is no longer the fastest growing economy

CNN Money: India no longer the world's fastest-growing economy: IMF Article published: Jan 16, 2017 – out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Macroeconomics (economic growth) The IMF's World Economic Outlook forecasts that economic growth in India will decline this year, thanks to a "temporary negative consumption shock" caused by the [...]

By |2018-10-25T04:12:37+00:00February 6th, 2017|Macro|Comments Off on IMF says that India is no longer the fastest growing economy

Interest rate increase in the U.S.

Forbes: Fed Hikes Rates For Second Time In A Decade, Indicates More To Come In 2017 Article published: Dec 14, 2016 – out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Macroeconomics (monetary policiey, interest rate) For the second time in over 10 years, the Central Bank of the U.S. (known as [...]

By |2018-10-25T04:13:09+00:00February 6th, 2017|Macro|Comments Off on Interest rate increase in the U.S.

New international agreement on decreasing global oil production

  BBC: Oil price surges as Opec and non-Opec members agree deal to cut output Article published: Dec 12, 2016 – out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Microeconomics (demand and supply, cartel) This time, the OPEC has managed to get an agreement through with non/OPEC members, most notablz, with [...]

By |2018-10-25T04:13:23+00:00December 14th, 2016|Micro|Comments Off on New international agreement on decreasing global oil production

ECB keeps increasing the money supply

BBC: ECB extends bond-buying scheme but at slower pace Article published: Dec 8, 2016 – out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Macroeconomics (Monetary policy) At times of low economic growth and very low inflation, Centrtal Banks use expansionary monetary policies to get things going. This includes decreasing interest rates [...]

By |2018-10-25T04:14:01+00:00December 14th, 2016|Macro|Comments Off on ECB keeps increasing the money supply

OPEC cuts oil supply first time in 8 years

Guardian: Oil price surges as Opec agrees first cut in output since 2008 Article published: Nov 30, 2016 – out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Microeconomics (demand and supply, cartel) Decreased supply leads to higher price: "The price of oil has surged by 8% after the 14-nation cartel Opec [...]

By |2018-10-25T04:14:11+00:00December 14th, 2016|Macro|Comments Off on OPEC cuts oil supply first time in 8 years

Spanish unemployment on the decrease

Bloomberg: Spain’s Unemployment Rate Falls to More Than Six-Year Low Article published: Oct 27, 2016 – out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Macroeconomics (unemployment) While Spanish unemployment is still the 2nd highest in Europe, it has now decreased to an over 6 year low, thanks to the increase in [...]

By |2018-10-25T04:14:22+00:00November 16th, 2016|Macro|Comments Off on Spanish unemployment on the decrease

Tax cuts for Chinese car manufacturers

Wall Street Journal: China Car Sales Rise Sharply in September Article published: Oct 12, 2016 – out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Microeconomics (government intervention: tax cut) Thanks to tax cuts, Chinese car manufacturers can sell their products at lower prices. No wonder that there are a lot more sales [...]

By |2018-10-24T03:42:27+00:00October 15th, 2016|Micro|Comments Off on Tax cuts for Chinese car manufacturers

Sugary drinks should be taxed according to WHO

NY Times: W.H.O. Urges Tax on Sugary Drinks to Fight Obesity Article published: Oct 11, 2016 – out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Microeconomics (negative externalities of consumption) The World Health Organization urges countries to introduce taxes on sugary drinks. Quote from the article: “If governments tax products like sugary [...]

By |2018-10-24T03:42:10+00:00October 12th, 2016|Micro|Comments Off on Sugary drinks should be taxed according to WHO

A more progressive tax system for Guernsey

BBC: Guernsey tax allowance to end for high earners Article published: Oct 4, 2016 – out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Macroeconomics (inequality in the distribution of income, redistribution) The government of Guenrsey decided to make their tax system more progressive. For example, to provide "[r]educed or no allowance [...]

By |2018-10-24T03:41:44+00:00October 11th, 2016|Macro|Comments Off on A more progressive tax system for Guernsey

Officials in England plan to introduce regulation to cut back childhood obesity

BBC: Childhood obesity plan 'to include 20% sugar cuts' Article published: Aug 17, 2016 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Microeconomics (negative externalities of consumption) The consumption of food and drink with high sugar content leads to many negative externalities. In the first place, it leads to [...]

By |2017-08-23T11:16:25+00:00October 5th, 2016|Micro|Comments Off on Officials in England plan to introduce regulation to cut back childhood obesity

Starting the IB?

Source of originial pic: funnyordie.com OK, let's make things clear at the beginning: The IB is tough, but it's by far not as bad as the fake picture shows above. On the contrary, and especially for IB Economics, you can score well pretty easily if you follow my advice below. Here are [...]

By |2017-08-23T10:49:17+00:00September 15th, 2016|Exam Tips and Resources, Welcome|Comments Off on Starting the IB?

Zimbabwe to ban electric water heaters to save power

BBC: Zimbabwe to ban electric water heaters to save power Article published: Oct 1, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Development Economics New regulations in Zimbabwe will make it mandatory to households to use solar panels for heating water in order to save electricity of up to [...]

By |2017-08-23T10:46:00+00:00October 2nd, 2015|Development Economics|Comments Off on Zimbabwe to ban electric water heaters to save power

Chinese manufacturing industry contracting for two months in a row

BBC: Chinese manufacturing continues to contract in September Article published: Oct 1, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Macroeconomics (AD/AS, economic growth) While the whole world is panicking about the decreasing economic growth of China, the fact that the manufacturing industry has shrank for the 2nd consecutive month [...]

By |2017-08-23T10:50:13+00:00October 2nd, 2015|Macro|Comments Off on Chinese manufacturing industry contracting for two months in a row

Market failure and cheating: Volkswagen’s “clean diesel” scandal

Reuters: Volkswagen could face $18 billion penalties from EPA Article published: Sep 18, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Microeconomics (market failure, regulation, pollution) While very unfortunate, the Volkswagen scandal serves as great material if you'd like to write a commentary on the negative externality of consumption. [...]

By |2017-08-23T10:51:08+00:00September 26th, 2015|Micro, Uncategorized|Comments Off on Market failure and cheating: Volkswagen’s “clean diesel” scandal

Fed decided to leave the U.S. national interest rate unchanged

Reuters: Global economy worries prompt Fed to hold rates steady Article published: Sep 17, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Macroeconomics (interest rates, monetary policy) Fed Chair Janet Yellen stated that "The outlook abroad appears to have become less certain," as a reason for not increasing interest rates [...]

By |2017-08-23T10:51:21+00:00September 18th, 2015|Macro|Comments Off on Fed decided to leave the U.S. national interest rate unchanged

A stronger dollar means American goods become less attractive for tourists

CNN Money: Macy's sales slump as foreign tourists stop spending Article published: May 13, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: International Economics (exchange rates, export prices) As the USD got stronger, tourists in the U.S. started spending less (especially when it comes to luxuries). Source of image: Kena [...]

By |2017-08-23T10:51:29+00:00May 14th, 2015|International Economics|Comments Off on A stronger dollar means American goods become less attractive for tourists

Drug prices soar in the U.S. as a result of low PEDs

The NY Times: Runaway Drug Prices Article published: May 5, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Microconomics (Elasticities, necessities, govt' intervention) Many medicines have a low price elasticity of demand due to the low number of substitutes and the fact that they are necessities. As producers are also [...]

By |2017-08-23T10:51:41+00:00May 5th, 2015|Micro|Comments Off on Drug prices soar in the U.S. as a result of low PEDs

Where does the garbage of the first world end up?

Wired: Inside the Hellscape Where Our Computers Go to Die Article published: Apr 23, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Development Economics (poverty, inequality, market failure, pollution) “PEOPLE LOVE GADGETS — especially shiny new ones. Bigger screens. Faster processors. Slimmer profiles. But what happens to our mobile phones, [...]

By |2017-08-23T10:51:50+00:00May 2nd, 2015|Development Economics|Comments Off on Where does the garbage of the first world end up?

Carbon floor price hike will trigger UK coal slowdown

The Guardian: Carbon floor price hike will trigger UK coal slowdown, say analysts Article published: Apr 2, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Microeconomics (Govt' intervention, minimum price/price floor, carbon tax) "Coal-fired power plants are set to be taken offline this year as a result of the [...]

By |2017-08-23T10:52:06+00:00April 28th, 2015|Micro|Comments Off on Carbon floor price hike will trigger UK coal slowdown

India’s inflation rate falls due to better weather

BBC: India's inflation rate falls to three-month low Article published: Apr 13, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Macroeconomics (inflation) Due to falling inflation, the central bank of India might cut interest rates for the 3rd time this year. Source of image: BBC, AFP Do you need a [...]

By |2017-08-23T10:52:44+00:00April 14th, 2015|Macro|Comments Off on India’s inflation rate falls due to better weather

Deacreased no. of people applying for unemployment benefits in the U.S.

Businessweek: Jobless Claims in U.S. Over Past Month Lowest in 15 Years Article published: Apr 9, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Macroeconomics (unemployment) It seems that the American labour market is improving as "jobless claims averaged 282,250 a week, the lowest since June 2000." Source of image: [...]

By |2017-08-23T10:52:54+00:00April 9th, 2015|Macro|Comments Off on Deacreased no. of people applying for unemployment benefits in the U.S.

A prospective future for electric cars

Reuters: Automakers race to double the driving range of affordable electric cars Article published: Mar 24, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Microeconomics (demand/supply, oligopoly, negative externality of production) Demand for electric cars are very low relative to demand for conventional ones. This might change in the [...]

By |2017-08-23T10:53:02+00:00March 25th, 2015|Micro|Comments Off on A prospective future for electric cars

Know your DEFINITIONS

No matter which IB Economics exam paper you're answering, accurately using definitions is key to get good marks. When you show the examiner that you know what the question is about, you've already laid down the basis of a great answer. If you use vague definitions or don't even include them, then you send the message [...]

By |2017-08-23T10:53:34+00:00March 25th, 2015|Exam Tips and Resources|Comments Off on Know your DEFINITIONS

Read the question

Although you might not feel as comfy during exams as this little chap at the beach, take our advice and make sure you READ THE QUESTION. Many students lose points just because they have not read the (full) question or that they have not considered the whole of it. We understand that the exam is [...]

By |2017-08-23T11:16:20+00:00March 24th, 2015|Exam Tips and Resources|Comments Off on Read the question

Anti-collusion regulations in action in China

The Economic Times (The Times of India): Qualcomm to pay $975 million fine over Chinese anti-monopoly claim Article published: Feb 10, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Microeconomics HL (monopoly power, collusion), International Economics (protectionism) China has stepped up against large firms violating anti-collusion laws. This time, [...]

By |2017-08-23T11:16:14+00:00March 24th, 2015|International Economics, Micro|Comments Off on Anti-collusion regulations in action in China

World Economic Forum —> World Development Forum: a much needed name change

The Guardian: Never mind growth, Davos delegates – how about a World Development Forum? Article published: Jan 30, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Development Economics (inequality, ending extreme poverty, economic growth vs. economic development) According to the author, Lawrence Haddad, a simple name change would mean [...]

By |2017-08-23T11:16:09+00:00March 22nd, 2015|Development Economics|Comments Off on World Economic Forum —> World Development Forum: a much needed name change

Increasing competition in the Mexican telecommunications industry

The Dallas Morning News: In latest Mexico deal, AT&T escalates competition with Carlos Slim Article published: Jan 26, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Microeconomics (market structures: oligopoly, monopoly; non-price competition) The telecommunications industry in Mexico is under change as AT&T has growing market power thanks to [...]

By |2017-08-23T11:16:03+00:00March 22nd, 2015|Micro|Comments Off on Increasing competition in the Mexican telecommunications industry

Irish govt’: price floor on alcohol to decrease the negative externalities of its consumption

Irish Examiner: 200 fewer deaths with minimum €1 alcohol price Article published: Mar 13, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Microeconomics (market failure, negative externalities) By setting a minimum price on alcohol, the Irish govt' aimed at reducing the consumption of this demerit good. They seem to [...]

By |2017-08-23T11:15:58+00:00March 22nd, 2015|Micro|Comments Off on Irish govt’: price floor on alcohol to decrease the negative externalities of its consumption

As sales decline, reform is on the way for McDonald’s

USA Today: McDonald's sales continue to slide Article published: Mar 9, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Microeconomics With declining sales, McDondald's plans to increase its brand loyalty/recognition by "enhancing the restaurant experience" to "reassert McDonald's as a modern, progressive burger company." You can show a decreased [...]

By |2017-08-23T10:57:02+00:00March 10th, 2015|Micro|Comments Off on As sales decline, reform is on the way for McDonald’s

Low-skilled people to enter the high-tech industry in the US

The Washington Post: Obama calls for effort to boost high-tech training, hiring Article published: Mar 9, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Macroeconomics (govt' spending, employment, education/training) 'Obama called on employers, educational institutions and local governments to develop a home grown high technology workforce that could help drive [...]

By |2017-08-23T10:57:05+00:00March 10th, 2015|Macro|Comments Off on Low-skilled people to enter the high-tech industry in the US

Ukraine: highest interest rate in 15 years at 30%

Reuters: Ukraine's central bank to lift benchmark rate to 30 pct Article published: Mar 3, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Macroeconomics (inflation, monetary policies), International economics (exchange rates, IMF) A great article about the unfortunate circumstances of Ukraine and how the Central Bank and the Govt' [...]

By |2017-08-23T10:57:09+00:00March 8th, 2015|International Economics, Macro|Comments Off on Ukraine: highest interest rate in 15 years at 30%

Price of sugar down because of overproduction – subsidy awaited

International Business Times (India): Mills Sell Sugar at Lower Rates to Pay Farmers as they Wait for Subsidy Article published: Feb 11, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Microeconomics (demand/supply, govt' intervention) Source of image: Agrodaily.com Do you need a little boost with IB Economics? Register for private [...]

By |2017-08-23T10:57:21+00:00March 3rd, 2015|Micro|Comments Off on Price of sugar down because of overproduction – subsidy awaited

U.S. agriculture delegation visits Cuba

Reuters: U.S. agriculture delegation visits Cuba, protests embargo Article published: Mar 2, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Microeconomics (opening up new markets - boosting demand) and International Economics (trade agreements) Source of image: endthesanctions.com Do you need a little boost with IB Economics? Register for private lessons here. [...]

By |2017-08-23T10:57:35+00:00March 3rd, 2015|International Economics, Micro|Comments Off on U.S. agriculture delegation visits Cuba

USD hit by a single comment

Reuters: Dollar hit by Japan government adviser's yen comment, Aussie jumps as RBA stands pat Article published: Mar 2, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: International Economics (exchange rates) Source of image: IndiaCrunch.in Do you need a little boost with IB Economics? Register for private lessons here. Looking for [...]

By |2017-08-23T10:57:52+00:00March 3rd, 2015|International Economics|Comments Off on USD hit by a single comment

Indian Govt’ to increase business confidence

The Economic Times (The Times of India): Budget 2015: Govt’s tax moves to ensure policy certainty, assure investors Article published: Mar 2, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Macroeconomics (deregulation) "Shoring up tax administration is a key policy priority for the government as it moves to attract [...]

By |2017-08-23T10:58:05+00:00March 3rd, 2015|Macro|Comments Off on Indian Govt’ to increase business confidence

Australian Central Bank leaves interest rates unchanged

Reuters: Australia's RBA holds rates, leaves door open for cut Article published: Mar 2, 2015 - out of date: no longer suitable for your IB Economics commentary IB Economics syllabus: Macroeconomics (monetary policies) Although a cut was awaited, the RBA held the rate unchanged, but an expansionary monetary policy might follow. Source of image: Daniel Munoz, Reuters Do you [...]

By |2017-08-23T10:58:17+00:00March 3rd, 2015|Macro|Comments Off on Australian Central Bank leaves interest rates unchanged
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