The Savvy Wallet

What is Modern Monetary Theory and why does it matter? Modern Monetary Theory (MMT) is a macroeconomic theory that puts the functioning of the monetary system at the center of its analysis. It has post-Keynesian roots and has gained popularity in recent years with its core claim that a state that issues its own currency does not have to fear insolvency 1 . The basics of MMT According to MMT, money is not a scarce commodity that the state has to collect from the private sector through taxes or borrowing before it can spend. Rather, money is a legal and social institution that the state creates and regulates through its monopoly power 2 . The state can use its currency-issuing capacity to finance its spending and achieve public policy goals, such as full employment, social welfare, and environmental sustainability 3 . The main constraint on the state’s spending is not the budget deficit or the public debt, but the availability of real resources (labor, capital, and natural resources) in ...

  The Economics Behind Content Creation and Monetization Content creation is the process of producing original and valuable content for an online audience. Content monetization is the process of earning income from content that you have created. Content creators can monetize their content in various ways, such as selling their products, offering exclusive access, collaborating with brands, or displaying ads. But what are the economic factors that influence content creation and monetization? How do content creators decide what to create, how to distribute it, and how to price it? How do content consumers decide what to consume, how to access it, and how much to pay for it? And how do platforms and intermediaries affect the content market? In this blog post, we will explore some of the economic concepts and models that can help us understand the dynamics of content creation and monetization. Supply and Demand One of the most basic economic concepts is supply and demand. Supply is the...

The Economics Behind Polarization Polarization is a term that describes the phenomenon of increasing division and conflict between different groups of people, often along political, ideological, or cultural lines. Polarization can have significant economic effects, both at the individual and the aggregate level. In this blog post, we will explore some of the causes and consequences of polarization, and how it relates to the current state of the world economy. What causes polarization? There is no single or simple answer to this question, as polarization can result from a complex interplay of various factors, such as: Economic inequality: When there is a large and persistent gap between the rich and the poor, or between different regions or sectors of the economy, people may feel resentful, frustrated, or alienated from each other. This can fuel social discontent and political mobilization, especially if people perceive that the system is unfair or rigged against them 1 Globalization an...

Prosperous Universe: A Space Economics Game for Savvy Wallets If you are looking for a new and exciting way to test your financial skills and learn more about the complex dynamics of the global economy, you might want to check out Prosperous Universe 1 , a browser-based space economy game that is built around a strong online community of real players. Prosperous Universe is not your typical casual game. It is a realistic and immersive simulation of a futuristic space economy, where you are the CEO of your own spacefaring company. You can explore the galaxy, design spaceships, forge alliances, and most importantly: produce, trade, transport, and profit. Unlike other games that rely on predefined prices and scripted events, Prosperous Universe features a purely player-driven economy based on the supply and demand of goods made within the game. Every resource and commodity can and must be produced by a real player, and every price is determined by the market forces of thousands of active ...

Cayman Islands: A Financial Paradise in the Caribbean If you are looking for a place to invest your money, you might want to consider the Cayman Islands. This British overseas territory, located in the western Caribbean Sea, is one of the world’s leading financial centers and a popular destination for wealthy individuals and businesses. But what makes the Cayman Islands so attractive for investors? Here are some of the main reasons: No direct taxation One of the most appealing features of the Cayman Islands is that it has no direct taxation. This means that there is no income tax, corporate tax, capital gains tax, wealth tax, inheritance tax, or sales tax. The only taxes that apply are import duties, stamp duties, and fees for various licenses and services 1 The Cayman Islands’ tax-free status dates back to the 18th century, when the British government granted them this privilege as a reward for their assistance in rescuing the crew of a shipwrecked naval convoy 1 Since then, the Caym...

The Everything Bubble: What Is It and How to Prepare for It You may have heard the term “everything bubble” being used by some financial experts and commentators lately. But what does it mean, and why should you care? The everything bubble is a term that describes the situation where almost all asset classes, such as stocks, bonds, real estate, commodities, cryptocurrencies, and even some exotic assets like non-fungible tokens (NFTs), are experiencing inflated valuations and high levels of speculation. This is largely due to the unprecedented monetary easing by the central banks, especially the Federal Reserve (Fed), which have pumped trillions of dollars into the financial system to support the economy during the coronavirus pandemic and other crises 1 2 The problem with this situation is that it creates a disconnect between the asset prices and the underlying fundamentals of the economy. In other words, the prices are not reflecting the true value of the assets, but rather the cheap ...

Have you ever heard of kidpreneurs? They are children who start their own businesses at a young age, often with the help of their parents, mentors, or online resources. They are not just playing around, they are actually making money, solving problems, and creating value for themselves and others. Some of them have even become famous for their entrepreneurial achievements, such as Moziah Bridges, who runs his own bow tie company called Mo’s Bows 1 , or Alina Morse, who invented Zollipops, a sugar-free candy that cleans your teeth 2 . Kidpreneurs are not only inspiring, but they can also teach us some valuable lessons about money and life. Here are some of the benefits of kidpreneurship and what we can learn from these young entrepreneurs: Kidpreneurs develop a growth mindset One of the most important traits of successful entrepreneurs is having a growth mindset, which means believing that you can improve your skills and abilities through hard work and learning. Kidpreneurs have this mi...

Russia is a country that has been involved in many human rights violations, political interference, cyberattacks, and military aggression in recent years. Some of the most notable examples are: The annexation of Crimea and the ongoing war in eastern Ukraine The poisoning and imprisonment of opposition leader Alexei Navalny and the crackdown on his supporters The interference in the 2016 and 2020 US presidential elections and the hacking of US government agencies The support for the Assad regime in Syria and the bombing of civilians The use of chemical weapons against former spies and dissidents in the UK and Germany These actions have provoked international condemnation and sanctions from many countries, but they have not deterred Russia from continuing its aggressive and authoritarian behavior. Therefore, some people have called for a boycott of Russia economically, as a way to put more pressure on the Kremlin and show solidarity with the victims of its oppression. But what does it me...

Why Art Investing Is NOT Just for Billionaires - Masterworks Art is one of the oldest and most enduring forms of human expression. It can also be a lucrative and rewarding investment, if you know how to do it right. But many people think that art investing is only for the ultra-rich, who can afford to buy multimillion-dollar paintings and sculptures from famous artists. This is a common misconception that prevents many potential investors from exploring the opportunities in the art market. In this post, we will show you why art investing is not just for billionaires, and how you can get started with Masterworks, a platform that lets you invest in fine art by artists like Basquiat, Picasso, Banksy, and more. The Benefits of Art Investing Art investing has many advantages over other types of investments, such as stocks, bonds, or real estate. Here are some of the benefits of art investing: Art is a tangible asset . Unlike digital or paper assets, art is a physical object that you can see...

Peer-to-Peer Lending in Europe via Monestro: A Brighter Investing Opportunity If you are looking for a way to earn passive income by investing in consumer loans from the European Economic Area (EEA), you might want to check out Monestro 1 , a peer-to-peer (P2P) lending platform that offers higher-quality, more secure and lower-risk investment opportunities. What is Monestro? Monestro is a P2P investment platform that connects investors with loan originators, who are companies that provide consumer loans to borrowers in various countries within the EEA. Monestro does not issue loans itself, but acts as an intermediary that facilitates the transactions and provides the necessary information and tools for investors to make informed decisions. Monestro is authorised and regulated by the Financial Supervision Authority of Estonia, and operates under the European Union’s passporting rules, which means that it can offer its services across the EEA and Switzerland. Monestro was founded in 2016...

The European Union’s Energy Crisis Explained The European Union (EU) is facing an unprecedented energy crisis that has caused a sharp rise in energy prices and brought hardship for many Europeans. The main cause of this crisis is Russia’s unjustified military aggression against Ukraine and its weaponisation of gas supplies 1 . Russia is the largest supplier of natural gas to the EU, accounting for about 40% of its imports 2 . However, since the invasion of Ukraine in February 2023, Russia has reduced its gas exports to the EU, creating a supply shortage and driving up prices. The EU has taken strong action to address this crisis and to protect its citizens and businesses from the negative impacts of high energy prices. In this blog post, we will explain some of the measures that the EU has adopted or is working on to cope with the energy crisis and to ensure its energy security and resilience in the future. Emergency regulation to address high energy prices The EU has adopted an emerge...

If you are looking for ways to diversify your portfolio and boost your returns, you might have heard of alternative investments. But what are they exactly, and how can you invest in them? In this post, we will explain what alternative investments are, what types of alternative investments exist, and what are the benefits and risks of investing in them. What are alternative investments? Alternative investments are a broad category of assets that do not belong to the traditional financial products, such as stocks, bonds, and cash. Alternative investments usually have different characteristics, risks, and returns than conventional investments, and often require more specialized knowledge and skills to invest in them. Some examples of alternative investments are: Hedge funds: These are pooled funds that use various strategies to generate returns, such as short selling, leverage, derivatives, arbitrage, and more. Hedge funds aim to achieve positive returns regardless of market conditions, b...