Behind Scam 1992: The Basics of the Securities Market

The Securities Scam of 1992 was a revelation. It opened up the eyes of the public to the volume of funds that pass through the Securities (Stocks and Debts) Market every single day. Almost three decades later, the 1 billion $ scam is back into popular culture and public spotlight with representation all over the…

The Economics of Having an Edge

Saudi Arabia is a desert country. Yet it imports sand from Australia. What’s the reason behind this bizarre arrangement? The sand Saudi Arabia has is not the right kind to build concrete for its towering skyscrapers and fancy resorts. These are too small and too smooth to be much use for construction; you might as…

Japan: The Miracle That Faded Away

“There are four kinds of countries in the world: developed countries, undeveloped countries, Japan and Argentina.” – Nobel Laureate Simon Kuznets In the 1970’s and 80’s, Japan looked like a utopian society, riding on the backs of economic success, which at the time, no one understood why. This “Economic Miracle” baffled economists all around the world….

Economics Declassified Newsletter: November 2020 Issue

Greetings!The Department of Economics, St. Xavier’s College – Autonomous, Mumbai is proud to present the November issue of its official newsletter- The Economics Declassified. This newsletter is our attempt to establish a space for the young minds where they could learn, gain insights and update themselves with the critical issues in the paradigm of Economics….

Mera Joota Hindustani

Growing Opportunities for the Indian Footwear Industry “There’s an awful lot you can tell about someone by their shoes.” ~ Forrest Gump (1994) Through popular culture and media, shoes have come to be regarded as a status symbol. Whether it’s a classy pair of red-bottoms or a casual pair of crocs, first impressions are often…

The Clock, The Consumer and The Consumer’s Folly

The cornerstone to the foundation of economics is the assumption that consumers are rational individuals and make pragmatic decisions. But, therein lie some core behaviour traits of humans, who remain irrational consumers, which urge them to act in ways vastly contradictory to logical expectations. A well-known example of consumer irrationality is the Zero Price effect…

Should Governments Fight a Recession With Spending Hikes Or Tax Cuts?

For Spending Hikes – Mehak Singh A recession implies significant decline in overall economic activity, usually due to a drastic drop in spending and has widespread effects such as unemployment, lower wages, and lost opportunities. So how exactly should the government wrap its head around these mammoth issues? The very nature of recessions suggests that…

The Invisible She

Let’s begin with a hypothetical proposition. What if Aristotle had a sister, who equally matched him in will and intellect? Would she have gotten the same opportunities, recognition and fame as her brother?… Maybe not! The patriarchal cultural and social norms prevalent during the Greek civilization would have proved to be major hindrances to her…

The Economics of a Stellar Civilization

A Theory of Infinite Supply There will come a time when humanity must choose between interplanetary colonization and extinction. Humanity’s shift to an interplanetary species may seem science fiction but it is both inevitable and undergoing. There is no question that this gargantuan shift will change our perception of the endless cosmos.  However, something that…

IKEA Effect: When Labour leads to Love

Have you ever breathed a sigh of relief, smiled wide and felt a sense of accomplishment after completing a puzzle? Not just puzzles, have you ever baked a cake and ended up valuing it more than a ready-made one? If your answer is yes, then you have experienced what one calls, “The IKEA Effect.” As…