I'm always astonished by how a change that is not visible nor tangible and is over and above minimal can make the headlines. But it always works. This week, for example, in the New York Times: "Fed Makes Biggest Interest Rate Increase Since 2000 as High Inflation Persists." What had happened was neither more nor … Continue reading Why central banks? →

At a press conference last November, as Vladimir Putin was massing troops along the border with Ukraine, he was asked what keeps him up at night. Putin answered that one of the main problems Russia faces today was its population decline and its threat to the country's economy. He added: "From a humanitarian point of view … Continue reading What determines a birth rate? – Or: The Russian population problem →

Why the strong Russian currency serves Putin, not Russia

Every time the prices at the gas stations are way up, there is (at least here in Germany) the same discussion.  That discussion goes along with the following question: Are the oil companies taking advantage of their customers, charging extra high prices to maximise their profits? The correct answer to this question is probably: Of … Continue reading The scapegoat problem: What’s missing in the gasoline price debate →

Putin is demanding payment in rubles for its natural gas exports. However, the contracts are denominated in euros and dollars. One would think that Putin would benefit from a change towards the ruble (why else would he act that way). But that's not the case at all. Let's compare the two payment methods.  Method 1 is the … Continue reading Little more than hot air: What will change if natural gas is paid in rubles →

Inflation is back. After many years of low inflation rates, prices have recently risen in much of the world.  The chart below shows the inflation rate of the G20 countries compared to the same month a year ago (I took the chart from here).   In this post, I would like to answer the following question: Is this rising inflation … Continue reading What’s the problem with rising prices? →

Tit-for-tat is a highly effective strategy in game theory. It explains how cooperation has evolved in human history. Tit-for-tat also explains how humanity could end in disaster.

The Story Spending time away from home I like the idea. For a week from today, I will be a tiny part of a steadily growing branch - the tourism industry (I will go on holiday to Switzerland).  Tell me more.   The United Nations World Tourism Organization (UNWTO) estimates that there were just 25 million international tourist … Continue reading In a nutshell: Past and future of the holiday industry →

Harvest in the Taubertal, in the south of Germany (I took this photo on 31 July 2021) In the picture above, there are no people to be seen. But there are some nonetheless. One person runs the harvester that is transporting the grain (already freed from the ears) onto a tractor-trailer where a second person … Continue reading 🌾 What is the best indicator to measure wealth? →