Economics Students Society of Australia

PART ONE. Modern Monetary Theory

PART ONE. Modern Monetary Theory

Your Tax Dollars Never Get Spent and Government Budgets Shouldn’t Balance Modern Monetary Theory (MMT) is based on what will be described as the Two Fundamental Truths of fiat currencies. Note that fiat currencies are openly floated means of exchange issued by governments [31]. These fundamentals are: 1. Federal

The Good, The Bad, and the Weird: Tax Edition

Economic History

The Good, The Bad, and the Weird: Tax Edition

There is a saying about the ubiquity of taxes which is itself so ubiquitous it isn’t even worth wasting my word count on. Instead, I’ll pose this question to you all: do you like tax? If your answer is yes, then you are either: a) my mother or

Germany on the Brink of Recession

Import 2022-12-14 05:06

Germany on the Brink of Recession

In 2021 Germany imported 102 billion cubic meters of natural gas, the largest volume in all of Europe, followed by Italy, which imported 62.9 billion cubic meters (Natural Gas Imports in European Countries 2020 | Statista, 2020). The leading gas exporters are Norway and Russia. One of the main gas

Pasokification: The economics behind the decline of the Parti Socialiste

Pasokification: The economics behind the decline of the Parti Socialiste

Ever since the advent of the fifth republic of France, The French ‘Parti Socialiste’ or Socialist Party has been a powerful and dominant force on the center-left of the French political spectrum. Between 1974 and 2012, the party finished either first or second in both presidential and legislative elections, except

The snow industry's left turn

The snow industry's left turn

Following the previous two difficult snow seasons, the $2.4 billion Australian Snowsport industry faces a host of new challenges to remain profitable. The costs “Skiing is expensive, but it’s still cheaper than therapy” – unknown In the absence of a storied family skiing lineage or wealthy family friends, one

Australia: A fourth world of welfare capitalism?

Australia: A fourth world of welfare capitalism?

In his landmark book of political economy, The Three Worlds of Welfare Capitalism, Gøsta Esping-Andersen posits that there are three welfare state archetypes that a country can fit into. Yet, Australia poses a problem for Esping-Andersen’s thesis. Esping-Anderson claims that Australia’s social security system, due to its reliance

How should Western economics approach Islamic economics?

economic theory

How should Western economics approach Islamic economics?

With the global system of Islamic finance standing at $2 trillion in value and rapidly growing, it is becoming increasingly important for Western economics to understand the principles underpinning Islamic economics. Western economists such as Timur Kuran have decried Islamic economics as incoherent, ineffective and confected, but when it has

Building the blocks of blockchain: Part two

Building the blocks of blockchain: Part two

Thus far, we have looked at the blockchain and its elements in isolation, and thus, we have yet to explain the most well-known feature of blockchain technology, decentralisation. Consensus in a Distributed Network To achieve decentralisation, the model of the blockchain that we have been discussing so far is distributed

The USSR and Barter Economy: How Pepsi Once Became the Sixth Largest Military in the World

The USSR and Barter Economy: How Pepsi Once Became the Sixth Largest Military in the World

Part one of this series focused on the structure of the USSR’s centrally planned economy and how that contributed to the Soviet ruble becoming worthless as international currency. After the end of Stalin’s rule, Soviet Premier Nikita Khrushchev implemented a doctrine of ‘de-Stalinisation’ which sought to ease the

A Very Brief History of the USSR’s Economy and the Value of the Ruble

Centrally planned

A Very Brief History of the USSR’s Economy and the Value of the Ruble

On the 24th of February 2022, Russian president Vladimir Putin announced that the Russian military was to conduct a ‘special military operation’ in the Donbass region in Ukraine, bordering Russia. Effectively, war had been declared on Ukraine, following decades of regional tension between the two nations, and broader geopolitical factors

Pace and Space: Is the NBA ready for expansion?

Pace and Space: Is the NBA ready for expansion?

Recent rumours regarding the National Basketball Association (‘NBA’) adding two franchises in Las Vegas and Seattle have reignited discussions around league expansion, most notably when NBA superstar LeBron James expressed his interest in owning a Las Vegas team.[1] Expansion has always been an attractive concept: new markets, more players,

Inflation: A global crisis on the horizon?

Inflation: A global crisis on the horizon?

For the past 30 years, the Australian cash rate has declined, from 17.5% in the 1990s to 0.85% today. Record low interest rates have been great news for individuals wanting to borrow money – homeowners were able to pay less in mortgage and new homeowners were enticed into the

Vision 2045: Shaping Vietnam's future economy through innovation - Part I

economic development

Vision 2045: Shaping Vietnam's future economy through innovation - Part I

Over the last few decades, Vietnam has undoubtedly made its mark on the global economy as a development success story. It has rapidly transformed from one of the world’s poorest nations, into a lower middle-income country within the span of a single generation, largely through Đổi Mới economic reforms.

Supply and Demand in Fast Fashion

Supply and Demand in Fast Fashion

What is fast fashion? The fast fashion phenomenon has revolutionised the fashion industry by changing consumer attitudes towards consumption.1 It is characterised by low-cost production and brings low cost to stores.2 It is defined as cheap fashionable clothes that are sold for mass consumers.3 Demand Clothing production

Is there a relationship between trust and economic growth?

Import 2022-12-14 05:06

Is there a relationship between trust and economic growth?

Economic growth is best described as any increase in a nation’s potential output that raises the average standard of living within a population. Trust is commonly omitted as a potential driver of economic growth given the difficulty that comes with placing a dollar value on intangibles. Despite this, the

Once upon a time in Babylon

Economic History

Once upon a time in Babylon

The scale and breadth of human history is almost unfathomable. Think of how much the world has changed in the last hundred years. Think of the suffrage movement which granted all adult women the right to vote. It seems like a whole different world to the one we know. How

The Market for Beauty

The Market for Beauty

We all want things to be beautiful. On an individual level, this might mean applying make-up or buying nice clothes. Mother Nature herself seems to have a favourite golden ratio to make the natural world aesthetically pleasing. And for an employer, this might mean hiring as many beautiful people as

To scoot or to boot - Are e-scooters here to stay ?

To scoot or to boot - Are e-scooters here to stay ?

Electric scooters, where do we begin? Since their launch in February, they have been everywhere in Melbourne, more specifically in the CBD and surrounding areas. If you have walked (or even driven) through any street in the city or nearby, within the last month or so, it is almost impossible

The impact of COVID-19 on ESG investing

The impact of COVID-19 on ESG investing

When Milton Friedman famously proclaimed in his 1970 New York Times article that the overarching social responsibility of business is to increase its profits, the world was in a very different state than it is today. Fifty-two years onwards, Friedman’s shareholder doctrine which centres around the traditional market economy

The new Silk Road: Cementing Beijing's global influence

The new Silk Road: Cementing Beijing's global influence

The word silk was derived from the ancient Greek word serikos, pertaining to the East Asian people from whom the Greeks received silks. Proposed in 2013, China’s Belt and Road Initiative (BRI) is a historically large infrastructure plan between 65 states, seeking to develop international overland and maritime trade

The case for increasing Australia's humanitarian intake

The case for increasing Australia's humanitarian intake

The war in Ukraine has caused the fastest growing refugee crisis since WWII with over 4 million people having fled the country in the past five weeks. In response to the crisis, there are three durable solutions, in which refugees can reclaim rights associated with citizenship: repatriation, local integration, and

Happynomics

The Science of Public Happiness “The science of public happiness was how Keynes saw his work as an economist.” Richard Davenport-Hines In his book, Universal Man: The Seven Lives of John Maynard Keynes, British historian and biographer Richard Davenport-Hines described the legendary economist’s outlook as such. And yet, throughout

Avoiding the disasters of disaster management - Part II

Avoiding the disasters of disaster management - Part II

In part 1, we discussed the importance of governments promoting risk-mitigation measures and regulation in the insurance market to reduce insurance premiums and to ease policyholders’ ability to select appropriate insurance coverage. However, these policies alone may not alleviate the most unaffordable insurance premiums in the most risk prone areas,

Australia's Prison Privitisation Project

Import 2022-12-14 05:06

Australia's Prison Privitisation Project

The size of Australia’s privately managed prison sector has increased dramatically. In 1990, Australia’s first private prison, the Borallon Correctional Centre in Queensland was opened. Following the opening of this facility, the country’s rate of incarceration increased substantially, which has contributed to Australia becoming the nation with

Avoiding the disasters of disaster management - Part I

Avoiding the disasters of disaster management - Part I

Australia has been plagued by unprecedented natural disasters in recent years. Natural disasters cost the Australian economy $18.2 billion annually, a figure that is expected to rise to $39 billion by 2050 due to climate change and urbanization into risk-prone areas. In response, insurance premiums have doubled in the