Central banks fine-tune a currency price frequently based on a set of criteria, most of which revolves around currency stability. However, some of the criteria may be to boost exports by engineering an artificial low price for a currency, that is below market expectations. Such criteria may be...

The foreign exchange market seeks to use a market-based mechanism to discover a price for a currency. But, this price discovery mechanism is hampered by a variety of externalities, chief of which is the different intermediaries involved in the trading and clearing of a currency. Such...

Due to various externalities, a labour market never operates in perfect competition mode. One such externality is the inelasticity in wages introduced due to personal fulfilment and satisfaction that led to personal job preference. This meant that salary is not the sole determinant of one’s...

Subsidies are commonly used in encouraging specific actions that could yield a benefit to societies, but which are expensive for the individual to undertake. One example is the purchase of hybrid vehicles which have lower carbon and air pollutants emissions per unit distance travelled. However,...

Competition reduces prices. But, what is not commonly known is that competition also promotes more products in the same category, leading to a diversity of makes and models that could only benefit the consumer. At the theoretical level, a perfectly competitive market creates the space for...

We all want to be promoted to a higher position for reasons of more power, higher pay, more duties, but seldom to handle more responsibilities. At least, the above are the prevailing norms in many economies and firms around the world. But, in that case, how could modern firms, especially...