Who are the BRICS?

Way back in November 2001, Goldman Sachs published a report looking at economic development in major growing economies around the world.  It was titled ‘Building Better Global Economic BRICs’ and was written by the then Head of Global Economics Research (and now a member of the House of Lords) Jim O’Neill. The paper emphasised the […]

A brief overview of ‘Modern Monetary Theory (MMT)’ in theory and practice

If you have ever taken a macroeconomics lesson, you have probably been taught that printing too much money is inflationary. It has been a widely established fact of the macroeconomy for time immemorial. Economists are always keen to remind the public of this fact whenever issues of government spending and taxation arise. However, the Modern […]

CBDCs in practice around the world today.

Having discussed the benefits and structure of Central Bank Digital Currencies last week, we now turn to the current state of their implementation and the risks associated with their use. CBDCs are still very much in their early stages but 86% of central banks are keen to research and trial them, partly to provide an […]

Just what exactly is a CBDC (Central Bank Digital Currency)?

You’ve heard of Bitcoin, but what about … Bank of England Coin? As finance continues to digitise, one of the few things that have stayed the same has been the use of cash. Although many of us use digital tools to manage our finances, cash is still a central part of a country’s financial life. […]

Who is next to join the European Union?

The European Union hasn’t finished expanding, there are actually several countries who are in the process of joining right now! Any country who joins is legally obliged via EU treaty to replace their own domestic currency with the Euro. Following recent news that both Ukraine and Moldova were granted ‘EU candidate status’ we’ll take a […]

Are Hong Kong and Singapore still ‘Gateways to Asia?’

It seems remarkable now to think that the opening up of Asia to Western businesses is a relatively new phenomenon. Until recently many Asian countries were either fully closed or heavily restricted to European and American companies. Free-market economics and capitalist ideas were in many cases outrightly rejected or at best viewed with deep suspicion. […]

Which other countries use the US Dollar as their currency?

The US Dollar is the world’s major reserve currency. It is estimated that over 55% of all currency held in reserve by Central Banks is in USD. Given the strength of the US Dollar, it is unsurprising that some countries actually use the currency of the USA as their own domestic currency. Not including territories […]

Which are the world’s major reserve currencies?

A reserve currency is one that is held in large numbers by a foreign country’s central bank or monetary authority. Reserve currencies are held for a number of reasons including: To minimise exchange rate risks To sure up the domestic currency To make complex international payments between countries To help, support and facilitate global trade […]

Hyperinflation is still happening in the 21st century

When you hear the word ‘Hyperinflation’ you probably think about that history lesson you had in school, the one about Germany between the wars where a wheelbarrow full of cash was needed to buy a loaf of bread. The one that included The Wall Street Crash and brownshirt Nazi thugs beating people up in the […]

Why Monday’s Tory leadership vote could signal trouble for the UK’s markets.

If there is one thing that markets hate, it’s instability. If they know change is coming, even if it’s potentially radical, it can be factored in, accounted for and the potential storm can be weathered. A surprise however is never welcome. On Monday, the UK Prime Minister won a vote of confidence from his party, […]