How Interest Rates Will Affect the UAE

The Federal Open Market Committee (FOMC) of the United States Federal Reserve recently decided not to increase interest rates. This is significant because US interest rates affect not only the economy of the US but every single economy in the world in quite a material way. Much of the analysis on how the actions of the FOMC will affect the

Continue reading »

The Intricacies of a Productive Economy

From the point of view of a national economy, what does it mean to be a successful company? Is it contribution to GDP? GDP is an attempt at measuring the production of an economy. It is not an efficiency measure, but a measure of overall economic strength. GDP is of course difficult to measure. First, how does one collect the

Continue reading »

Saudi Oil Price Redux

In an earlier article I corrected some common misconceptions on what is happening with oil prices and how it affects the economy. This generated some feedback and further questions that I will address in this article. In particular I will focus on understanding the role of a cartel, the long term incentives of an oil producer and why oil prices

Continue reading »