The Economics Thread, Bootstrappin' Since 1776.

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UnobservantBastard_sl

shitlord
653
1
Generally fuel prices are extremely reactionary when going up, because fuel retailers and heavy use industries like trucking and airlines have to buy the next delivery, so they have to make up the difference with the current fuel inventory. Then on the way down they lag considerably since it is only competitive market pressure that forces them down.
 
Ukerric

Ukerric

Bearded Ape
<Silver Donator>
8,388
10,457
Palum_sl said:
Why charge less when you can charge the same? I don't think the downward effects are universal, unlike upward price swings. Some competitive market areas sure, but airlines are all "hey, more free money yay!" and I'm pretty sure that describes a lot of industries.
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Naive economists used to draw their diagrams without checking the numbers on the scales.

These days, a fairly large number of economists have realized that different stuff occurs at a 0 border (like wages being more inelastic in downward fashion that upward, negative effective interest rates leading to weird markets, and so on).
 
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Running Dog_sl

shitlord
1,199
3
The Smurfs are causing problems for China

As the Chinese economy stumbles, wealthy families are increasingly trying to move large sums of money out of the country, worried that the value of the currency will fall and their savings will be worth less. To get around the country's cash controls, individuals are asking friends or family members to carry or transfer out $50,000 apiece, the annual legal limit in China. A group of 100 people can move $5 million overseas.

The practice is called Smurfing, named after the blue, mushroom-dwelling cartoon characters, and it is part of an exodus of capital that is casting doubt on China's economic prospects and shaking global markets. Over the last year, companies and individuals have moved nearly $1 trillion from China.
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Log In - The New York Times
 
khorum

khorum

Murder Apologist
24,338
81,363
Oh look, regulation causing capital flight. If only two centuries of economic history, remedial math and common fucking sense could have predicted that.
 
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