Opinion
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Bank Runs. What is next?
The banks facing difficulties in the USA and Switzerland include Silicon Valley Bank, Signature Bank, First Republic Bank, and Credit Suisse. Silicon Valley Bank, essential to the tech industry’s financial ecosystem, has been taken over by the FDIC following a classic bank run. Signature Bank has also faced a similar situation, while First Republic Bank Continue reading
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Is it efficient for Federal Reserve to implement more significant interest rate hikes rather than smaller ones and sacrifice employment?
The Federal Reserve is responsible for maintaining stable prices and maximum employment in the economy, and it often uses monetary policy tools such as raising interest rates to control inflation. While increasing interest rates can help slow down inflation, it can also reduce economic activity and potentially cause job losses. In terms of ethics, the decision Continue reading
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Inflation, causes, the Fed interests rate policy, and potential economic effects
What is inflation? Inflation refers to the general increase in prices of goods and services over time, reducing the purchasing power of money. In other words, inflation is the rate at which the overall level of prices for goods and services rises, and consequently, the currency’s value decreases. Various factors, including an increase in the Continue reading
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Time Value of Money in Presence of High Inflation
The time value of money is an essential financial concept that explains the future cash flows on different dates. The present value of money can be invested in earning positive interest to receive greater future value; therefore, interest rates can be considered as the required rate of return. Assume a person will get paid Continue reading
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Economy vs. Financial Markets
Gross Domestic Product measures the market value of services and goods produced in a given period. It is widely used as a reference for the health of the national and global economies. GDP is important because it provides information about the health of the economy. When GDP is strong, manufacturing activity and employment are likely Continue reading
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COVID-19: Black Swan and the Global Markets?
Can we forecast the future? Models try forecasting the future to measure and manage the risk, but Nassim Taleb argues that unforeseen events are hard to predict. He calls them Black Swan events. In his book The Black Swan, Nassim Taleb describes the term as an event or occurrence that deviates beyond what is typically Continue reading
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COVID-19
How did coronavirus change our lives? Society is facing one of the greatest threats since World War II. It can be compared to World War II because of its influence in 200 countries so far with rapid fatality rates. First known case of coronavirus traced back to November in China and spread over to other Continue reading
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Bilgin Demir 