Microeconomics studies studies individual units, like families or businesses. Macroeconomics studies economic aggregates.
Microeconomic variables are those patterns or elements that can be used to describe the behavior of a person or an individual economic unit, like a business. A variable is a magnitude that may have different values in different periods of time. Variables are measurements that help to understand the behavior of economic units or the behavior of the economy as whole.
The economy of Argentina is in a dangerous situation:
- capital outflows
- high inflation
- low growth or negative economic growth (we will see the statistics for the current semester in a few weeks).
- fiscal deficit
The dynamic behavior of all this variables is worsening. In Latin America, Venezuela is the only country that has stagflation.
Investing in Ethereum is a good alternative for people interested in disrupting innovations with high growth potential and cryptocurrencies in general, and be willing to accept the inherent high price volatility.
Investors in cryptocurrencies are advised to diversify it’s portfolio, and only invest money if they are able to afford capital losses in the case of short term price fall. Anyway, Ethereum is a promising technology in the long term.
Economic Growth is the increase in the quantity of goods and services produced in an economy during a period of time.
The GDP (Gross Domestic Product) measures the value of the goods and services produced during a period of time. The real GDP takes inflation into account, that is, the effects of the inflation are removed.
Technical Innovation is the process of implementing new ideas, related with practical knowledge or experience, into a productive process.
Technical innovation results in lower production costs or greater value added. Lower production costs can arise from better production processes. Greater value added can arise from new features or higher quality.
Innovation is the process of implementing a new idea or invention. The result of this process is to generate more added value, reduce costs or offering a new product or service to the market.
Innovation vs Invention
Innovation should not be mistaken for invention. The word invention refers to just the creation of a new idea or method. Innovation not only refers to the creation of a new idea, but also to its application in a productive process.
Ethereum is a decentralized public platform that can run applications based on a blockchain. Anyone can create applications for the Ethereum platform. Ethereum provides a cryptocurrency called Ether. Programs running on Ethereum can make automatic payments with Ether.
Index investingis a form of passive investing that consists in archive the same return as a market index. Usually, it consist in purchasing shares of an index funds. Index funds are mutual funds that mimic the composition of a market index, like the S&P 500 or the Dow Jones Industrial.