Slovakia is experiencing situation common to many European economies. The price of electric energy on the market is falling, so is the overall consumption of electricity. And yet, the final price for consumers, especially in the industrial sector, remains high.
Riding on the wave of historical fear, Slovak government quickly came up with a new protective law. In general, it forbids any agricultural landowner to sell land (2000 square meters and more) freely to just anyone. The willing seller has to actively search for an interested local farmer and offer him the land for “usual” price first.
In the last five years, Piraeus Bank has lost 97% of its value and Eurobank (indeed, an apt name) an astounding 99.8% of the value. Their market value is currently five times lower that the market value of the Uber company. However, the Stock Exchange has not reached the historic low of the year 2012.
The invisible hand is actually made of billions of very visible hands which put the products into shopping carts, receive payments, or shake other hands to complete a contract. The market is efficient because it is the only real “social” element of the arrangement of the society.
To understand utility of an intermediary we need to understand subjective price theory. A can of cheese does not have a universal value given from the “universe”, but rather N subjective values which vary in time and space. A task of the intermediary is to exchange what we need less for what we need more.
The investment incentives (part of state aid) are like a looser relative at a family meeting. Nobody is too excited to see him, but everybody is accepting that he has to be there. Every single economist will confirm that the incentive represents market disorder.
Since the May 14, 2014, Google has received 185.000 requests and deleted 670.000 search results (i.e. it made impossible to find particular articles via European versions of Google search engine). The EU still does not understand the old truth that once something is on the Internet, it stays there forever, and that the Internet does not equal Google.
The sick man of Europe – France – is all over the economic papers for almost a year now. But while the critique focused on Holland and his companions, the biggest economic nonsense competitor walked quietly in the shadow – Italy.
An online tool created by Institute of Economic and Social Studies shows complete breakdown of member states’ costs and guarantees for the rescue of the Eurozone.