Why do we value items purchased in a bundle less than those purchased individually? Why We Treat the Same Thing Differently When It Comes in a Package Imagine buying 10…
What Is Quantitative Easing (QE)? When an economy is weak, central banks usually try to stimulate it by cutting interest rates. But what happens when rates are already near zero…
What Is Quantitative Tightening (QT)? Imagine a central bank’s balance sheet as a giant reservoir of liquidity. During a crisis, the central bank may flood the financial system with money…
Why are we satisfied by “good enough?” Why “Good Enough” Often Wins We like to imagine that people make decisions by carefully weighing every option and choosing the best one….
The Government is doing Quantitative Easing(QE) instead of Quantitative Tightening(QT)? Why? They are basically stuck between hard and rock places – Run-away Inflation or Government Bankruptcy? 1. What Is the…
Why do we transfer negative emotions about being broke on items that we purchase? Have you ever bought something you normally enjoy—perhaps a favorite restaurant meal—then felt oddly disappointed afterward…