Category Archives: Armchair Economist

Understanding a Stock Quote

A stock quote is a compact representation of all the relevant pieces of information attached to a stock. They can be accessed either in newspapers or online. Irrespective of the source, most stock quotes always describe a few basic parameters concerned with a stock. Following is a stock quote of American Express Co. taken from Yahoo Finance. This post draws meaningful inferences out of a stock quote. Continue reading

Tagged ,

The trap of the sunk cost fallacy

The other day while browsing through my feed on Quora, I came across this wonderful concept of economics which can be extrapolated to the realms of psychological decision-making and was surprisingly intrigued by its impact on our lives. The sunk cost fallacy affects us in a subtle manner almost every day and we being completely oblivious to its existence let it get the better of us. However, the mere realisation that it exists can do wonders to our productivity and our decision-making abilities. Continue reading

Tagged , ,

Rexit: Taking note of Raghuram Rajan’s achievements as RBI governor

Raghuram-Rajan-3

Raghuram Rajan: The hero India needed but not the one India deserved

Raghuram Rajan, perhaps the only ‘Rockstar’ in the world who is not an entertainer, commands an immense amount of respect globally for his strong grip on matters of economics. Taking the charge of the RBI Governor when the Indian economy was in a state of despair, Rajan has performed exceptionally well. His resume is too good to be true. Continue reading

Tagged

On the science vs. social science debate

There has been a long-standing discussion on the nature of economics as a subject. Various erudite scholars and experts have held different views regarding whether economics is a science or social science. To develop a viewpoint on this matter it is important to understand the disciplines of science and social science inside out.

Continue reading

Tagged

On the origin of “economics”

“Which modern day subject of study derives its name from the ancient Greek word ‘oikonomia‘ meaning the ‘the rules or management of a household’?” This was a question that I encountered in one of the quizzes that I was participating in, way back in high school. Although, economics had been formally introduced to us as a subject but I was completely unaware of the etymology of the word ‘economics’. Continue reading

Tagged ,