The banknotes and coins in circulation are what most people think of money as. In fact, they represent a very small fraction of all the money in the economy, depending on how you define it. Most of your money isn't in the family safe or hidden under the mattress. …

The Greeks said “OXI” to the austerity measures proposed by the creditors. The country missed a payment to the IMF, becoming the first developed country to boast such an achievement. The Greek banking system has been on a “bank holiday” for the second week now, and the markets are anxious about the outcome of the current crisis. Throughout …

Having barely emerged from recession, the European economy is showing negligible growth and, by all accounts, is on the verge of entering a deflationary spiral. A situation similar to that in Japan, which lost two decades of no economic progress. It is time for tough measures from the ECB, warn world-renowned financial analysts and …

There is no topic that has generated as much controversy in economics as the "rationality" of economic agents. Critics of "homo- oeconomicus" deny both its existence and the ability of economics to explain real processes and phenomena. This is the so-called "bad input/bad output" problem, i.e. when you build a structure based on wrong assumptions, the results made ...

Why are things not working out in the energy sector? Politicians have all the leverage to control the industry, but in practice they systematically make the wrong decisions. The usual excuse is a lack of sufficient control over the sector. The political decision-making process has inherent defects that stand out when compared to the free market, which by its very nature …

The thesis that economic bubbles are an inevitable creation of the market continues to be somehow promoted in the public sphere; that they are fueled by psychological factors, by the herd behavior of profit-hungry investors. Even more disturbing is the claim that a bubble can only be recognized when it bursts.

The raging discussion in the media space about the role of the market and the state is undoubtedly an interesting topic. The total ignoring of basic concepts and facts in it is definitely disturbing. This article is also aimed at explaining them. Who comes first? The person or the society.