Trinity Economic Review
5th Edition (2022)
Contents 03.
11.
The Blockchain Trilemma: Bitcoin’s Scalability Issue
How does financial technology impact the mission of the Bank of England?
Jared Thompson
Lev Titov
05.
13.
How can you put value on a life?
What are the effects of package holidays on the local economy and culture?
David Aisa Miller
Tom Binns
07.
15.
The Volcanic Economics of Icelandic Tourism
The economic consequences of war
Josh Binns
Yusuf Jamil
09.
16.
What impact has Covid19 had on property?
Turkish inflation – 7 times higher than the UK
Jay Rabheru
India Aitken
17.
26.
Monopolies
The Economics Pathway
Nilaya Haldipur
3 Years After Trinity An interview with Brandon Man
19.
27.
Russia-Ukraine Conflict; Direct and Indirect effects on global supply chains
The Economics Pathway 5 Years After Trinity An interview with Usmaan Jamil
Thushan Pieris
21.
28.
CEO of Evolve Cricket
The Economics Pathway
An interview with Aarush Wangoo
5 Years after Trinity
23.
29.
What happens when things don’t go to plan: Restructuring Services
Further Reading on the articles featured in this edition
An interview with Nathan Thomas
An interview with Philip Reynolds
25. The Economics Pathway 4 Years After Trinity An interview with Nivashinie Logeswaren
30. Economic Quotes
The Blockchain Trilemma: Bitcoin’s Scalability Issue Jared Thompson Bitcoin was created to provide a secure, decentralised, and global digital currency, a form of money free from the control of a single, powerful entity who can control it. No banks charging you to be able to use your money, no Bank of England or U.S. Treasury printing money to cancel their nation’s debts. Just a system of computers all over the world communicating with each other and facilitating the Bitcoin transactions; instead of a bank you essentially have the world’s largest supercomputer working your money. This system is called the blockchain, and it works like this: every single Bitcoin transaction that occurs between two entities gets recorded permanently in a long list. To make calculations and storage more efficient, the transactions are grouped into blocks. Whenever there is a new block, it gets added onto the end of the list much like a chain, hence the name blockchain. To provide an incentive for people to provide computers to power the processing of transactions, a guessing game with a reward is incorporated into the creation of each block. The computers that participate in the guessing game are called miners. Each miner must try and guess a secret code determined by the network that is associated with each new block, and if they
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guess correctly, they receive some freshly minted Bitcoin as a reward. Note how this also solves the issuance of new currency. To make it hard to guess, the network requires them to use cryptographic calculations – therefore we get the name cryptocurrency. The average amount of time for the code on a new block to be guessed is called the network’s block time, and it is dependent on the difficulty of the code and the required calculations. Once a miner has successfully guessed the code, they verify all the transactions in the block to ensure there are not any fraudulent ‘double-spends’ or cheating occurring before adding this new block onto the blockchain. Other computers in the network (nodes) must also verify the transactions and come to a state of consensus on the block before it can be appended. However, although the blockchain system is excellent in principle, it currently has a major pitfall. The blockchain trilemma says that it is not feasible for a system to be optimally decentralised, scalable, and secure without compromising in one of these facets. In an ideal world the blockchain would be decentralised without reliance on a central point of control such as a bank; scalable and able to handle an increasingly growing number of transactions; and secure with the system
able to operate as expected and defend itself from attacks, bugs, and unforeseen issues. However, in reality every current project must sacrifice in one of the core aspects to achieve a functional blockchain system, with the most common one being scalability. A project cannot risk poor security, and decentralisation is one of the defining characteristics of cryptocurrency, so scalability is the natural victim. And this is true of the Bitcoin network – it can only process a meagre 7 transactions per second (as opposed to something like
Visa’s 1,700 per second). The problem is that a decentralised system is slow and takes a lot of time. If a transaction requires multiple confirmations from nodes before reaching consensus, then inherently, it will take longer than if a transaction can be confirmed by a single entity (as with the centralised Visa). The way to solve this? There are two methods that stand out: firstly, you can decrease the difficulty of the codes on the blocks which the miners must guess. If the codes are easier to guess the transactions can be validated and executed quicker. But then, if you make them too easy to guess and the block times become too quick then a malicious attacker in possession of lots of miners could mine most of the blocks and gain a degree of control over the system: centralisation. You need to find the balance between the two to have an optimally functioning system. The second method, blockchains can use a different processing mechanism (which, unfortunately, will take too long to explain in this article) or outsource the processing altogether by utilising layer 2 protocols.
Layer 2 protocols act as a secondary framework built on top of the main blockchain (layer 1). Because they are built on top of an existing framework, they are versatile and can vary in function and method. Their main goal is to solve the transaction speed and scaling difficulties that are currently starving blockchain networks of their true potential. They work by using off-chain computations on the transactions before sending them back onchain as a single pre-computed transaction for the layer 1 chain to then validate and add to the list. This vastly reduces the computing and storage resources required to validate the blocks by decreasing the amount of data in a transaction, using ingenious methods. It follows that the networks can then run faster because they basically have less work to do to achieve the same output. ZK-Rollups are an example of a layer 2 protocol on the Ethereum network (another cryptocurrency different to Bitcoin in many ways), which act as a smart contract (a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code2, that operate on a blockchain like Ethereum) that simply bundles a huge number of transactions into one and computes them in large chunks. So, while solutions are being rapidly developed to try and increase the scalability of blockchain networks, at the moment cryptocurrencies are still bound by the blockchain trilemma. It will be a race to see who can successfully implement optimal decentralisation, scalability, and security into a single system.
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How can you put value on a life? David Aisa Miller Having recently learnt about cost-benefit analysis in three of my A-level subjects (Economics, Geography and RS) I began to evaluate, and want to continue through this article, its morality. Whilst also considering the very significant and essential economic aspects which is ultimately why cost-benefit analysis is a regularly used tool in Business. Specifically in Economics we studied cost-benefit analysis as a part of positive and negative externalities which is often where this tool is used in practice. Ultimately, this article should help explain the complexity and ethics of the analysis by presenting relevant case studies along with my own personal judgment. Firstly, it is important to clarify and define what cost-benefit analysis is in order to avoid any confusion or misconceptions. As described by The Economic Times it considers both quantitative and qualitative factors for analysis of the value for money for a particular project or investment opportunity. Benefits to costs ratio and other indicators are used to conduct such analyses. Simply put, it is a procedure for estimating all costs involved and possible benefits to be derived from a business opportunity or proposal.
Figure 1 Moreover, figure 1 exhibits the most significant cost and benefits. This contemporary example demonstrates how cost-benefit analysis can help governments and businesses determine the most profitable solution to a problem, but it also shows how it fails to consider emotional or social damage to families.
Figure 2 A coherent and relatively recent example is the Phillip Morris Study which aimed to calculate the costs and benefits of cigarettes in order to decide whether it would be monetarily favourable to increase cigarette tax. Michael Sandel of Harvard University as part of episode two: “Putting a price tag on life” of his series ‘Justice: What's the right thing to do?’ presented that the net gain if citizens in the Czech Republic (year 2000) smoked would be $147million including savings from premature deaths of $1227.00 per person.
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Another historically significant example is the Ford Pinto case in the 1970s where victims of the dangerous fuel tank at the back of the car sued Ford. This led to the discovery of a previous cost-benefit analysis carried out by Ford to calculate if it was financially worth installing a protective shield to increase safety. This example is particularly interesting because unlike the Phillip Morris Study, Ford had to place a value on life which as seen in figure 2 was $200,000. This left the jury enraged and victims were immediately given their settlements. Ultimately, as suggested by students in Michael Sandel’s lecture at Harvard and as hard as this may
be, someone must put a monetary value on human life to allow decisions to be made. Although it might be seen as unethical to put a price on human life, from an economic standpoint it is seen as vital for society to function efficiently and profitably. To conclude, I believe that cost-benefit analysis when dealing with potential loss of life is inherently immoral because placing a value on human life suggests that you can quantify its worth which is incorrect as these are subjective matters.
This obstacle is best displayed in the film ‘Worth’ on Netflix about the September 11th Victim Compensation Fund and how it was Kenneth Feinberg’s job to calculate the monetary value of lives lost by turning names into dollars presented in figure 3. Furthermore, it will always lead to further disagreements because everyone has different views towards the costs and benefits, which leads to conflicting interests. But in a world where decisions must be made it does seem like it is the best and only process, however hard it may be to value factors such as human life.
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The Volcanic Economics of Icelandic Tourism Josh Binns The Icelandic financial crisis of 2008-2010 was, relative to the country’s 2007 population of 305,000, the largest systematic banking collapse globally in economic history, with all three Icelandic banks defaulting and the Icelandic GDP shrinking 10% from Q2 2008 to Q1 2010. In this article, I will be exploring how Iceland managed to pull off one of the most volcanic economic booms in living history, almost entirely through tourism, and what consequences this meteoric rise has had.
The main economic driver of Iceland’s economy is tourism, especially their vast array of volcanoes and the springs associated with them. The economic boom beginning in 2010 was fuelled largely by volcanic tourism, which makes up 10% of
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the economy and has contributed to the mammoth climb of $13b in GDP since 2011 to $27b, more than doubling in less than a decade. Beginning in 2010, the tourist boom was fanned by a weak kroner, meaning that tourists could get more for their money in Iceland compared to other countries. However, as the kroner has rebounded and become stronger, this has shallowed the increase in tourist numbers in recent years, although not preventing numbers climbing 378% since 2010. As an export item, tourism is by far the largest of Iceland, making up more than 30%, highlighting a clear upward trend in the economy since the crisis, largely fuelled by tourism. 97% of these tourists visit the capital, Reykjavik, which allows easy
access to volcanic features such as the famous blue lagoon, where more than 50% of foreign visitors frequented in 2019, demonstrating the country’s reliance on its natural landscape and foreign visitors. Despite this, there are indications within the industry that Iceland’s status may be dwindling as a tourist hotspot, as scheduled airplane seats (a key industry metric) fell 27% in the summer of 2019. This accentuates how volatile the Icelandic economy is to domestic issues, with the collapse of Reykjavik based Wow Air early
are 44% higher than the EU average, and alcohol a massive 128% above it) as the reduction in demand means the limited supply of accommodation hasn’t got an incentive to charge higher prices, and price levels will subsequently fall in order to meet a new equilibrium of lower demand and lower price. This further benefits local residents as negative externalities associated with these high prices, such as tourists breaking into churches to sleep, will be less likely to occur and the subsequent costs associated with this can be mitigated. In conclusion, whilst the astronomic rise of Icelandic tourism provided a substantial economic recovery, it was clear from the offset that with the introduction of low-cost airlines it would be a largely unsustainable industry for such a small country. The collapse of this industry within Iceland has allowed it to develop a more sustainable, although marginally less profitable, tourism sector that will allow it to pursue economic growth in the long term based upon its natural landscape.
in that year reducing capacity to the United States, particularly cities such as Cincinnati, St. Louis and Little Rock, all of which used to have cheap return flights to Iceland at $99, which has been enhanced with the grounding of the Boeing 737 Max, of which IcelandAir owns 9, reducing capacity further at a time when profits for the firm should be soaring, having a monopoly on Reykjavik airport. As a result of this collapse, an entire tier of travellers has been priced out of the market, and consumption of tourism in Iceland is subsequently being rationed to those who can afford it, which is especially limited in the United States as it lacks a low cost airline to Iceland. However, experts predict that there will be clear benefits from the collapse of Wow Air, as it will substantially reduce demand for tourism in Reykjavik meaning that the current stratospheric price levels are expected to reduce (for context restaurants
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What impact has Covid-19 had on property? Jay Rabheru A study from 2004 by Princeton University found that commuting was among the least enjoyable activities that people regularly did. The Office for National Statistics has found that commuters have “lower life satisfaction...lower levels of happiness and higher anxiety on average than noncommuters”. This would lead us to believe that working from home can make people happier. A paper published in 2017 in the American Economic Review found that workers were willing to accept an 8% pay cut to work from home.
Research into the effects of Covid-19 have shown that the pandemic has accelerated pre-existing trends. Before the pandemic, Americans spent 5% of their working time at home. By spring 2020 the figure was 60%. The shift has gone better than expected. People are working longer hours, but they report higher levels of happiness and productivity. In 2020, Pinterest, a social-media firm, paid $90m to end a new lease obligation on office space near its headquarters in San Francisco to create a “more distributed workforce”. Meanwhile, Facebook signed a new lease on a big office in Manhattan. Bloomberg is reportedly offering up to £55 ($75) a day to get its workers back to its building in London. Governments are encouraging people “back to the office”. Businesses are still trying to understand which of the Covid-19 pandemic’s effects will be transitory and which will be permanent. Hybrid working / working from home for some days each week is likely to
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be a permanent change. A report from Glassdoor (a US website that allows workers to rank their employers) finds that less commuting has improved employee health and morale. 70% surveyed want hybrid working, 26% wanted to stay at home permanently and just 4% want a fulltime return to the office. Telecommuting offers potential cost savings for organisations, apart from the reduced need for office space. Remote workers do not need to live in big cities where property is expensive. If they live in cheaper towns and suburbs, companies need not pay them as much as house prices will be lower as well as prices of other items. Spending weeks trapped indoors has given them a chance to think hard about their living quarters. Richard Donnell, the research director of Zoopla, a property website, thinks that Britain has undergone a “once in a lifetime re-evaluation of housing requirements”. Price rises are positively correlated to size of property and the value of one-bed flats has slipped since the market reopened after the first Covid-19 lockdown. Renters as well as buyers are becoming less keen on flats. Apartments have fallen out of the top five categories searched for by potential tenants on Rightmove, a property website, in favour of smaller houses. Access to a garden or a nearby park are much more highly favoured than a year ago. Covid-19 has caused a shift in demand away from big cities to housing in smaller, more rural towns. The expectation that commuting may no longer be a daily task has meant that people are demanding housing outside of busy cities causing skyrocketing prices. The stability of house prices in the face of the economic turmoil inflicted by Covid-19 may seem baffling: property prices typically move in tandem with the economy. But furlough schemes and fiscal stimulus have limited distressed sales this time. Interest rates are ultra-low and lockdowns and the reduced opportunity
to spend mean that those who have kept their jobs have stashed away cash. As Covid-19 spread and countries locked down, people’s homes also became their offices, schools and gyms. DIY spending rose by 20% last year. Other people sought new places to live. In Britain a temporary holiday on stamp duty (a housingtransaction tax) caused the volume of sales to rise in the final quarter of 2020 to a 14year high. Rightmove is advising estate agents who advertise on its website to emphasise different characteristics these days. Whereas in the past proximity to a train or tube station was much in demand, that “isn’t going to be such an important sellingpoint for those buyers expecting to work from home more”. According to Rightmove, after the lockdown, 54% of property searches by London residents have been for areas outside the capital, compared with 45% a year ago—the biggest fall in interest in any city. Flats make up about two-fifths of new properties built over the past decade and housebuilders worry that flats will see a permanent fall in value. Successive governments have stressed the need to rebalance the country away from its capital
your late 20s you might now decide to skip the two-bed flat that used to be the first rung on the ladder and go straight to the three-bed semi in the suburbs,” says a housing boss. If employees are coming in less often, firms will adopt hot-desking as the best use of office space. A McKinsey report suggests employers are planning to downsize their offices by 30% with some will welcome the chance to trumpet the resulting reduction in their carbon footprint. But hot-desking also reduces the scope for workplace friendships. If so, employees will have even less incentive to go to the office five days a week—leading to even smaller offices with more hot-desking, and so on. Governments and firms must seize the moment. The pandemic, for all its ill effects, offers a rare opportunity to restructure the world of work. The laws of supply and demand dictate that housing will be cheaper if more homes are built. Considering this new situation, governments should expend more energy on tackling the housing market’s long-term problems.
but failed to do so. A pandemic seems to have shifted things in that direction. “If you’re a prosperous two-earner couple in
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How does financial technology impact the mission of the Bank of England? Lev Titov Lev recently entered the Bank of England Innovation competition and won with his entry. He investigated the impact of financial technology (FinTech) innovation on the mission of the Bank of England, concluding that it could undermine the central bank’s inflation mandate. Below is his entry. Primarily, fintech will fragment the underlying technology used by the financial sector, threatening the BoE transmission mechanisms that are vital for the conduct of monetary policy. This is a significant threat, to both the financial system, and the wider economy, clearly showing that the management of digitalisation should be a priority for regulators. For central banks, a failure to adapt to the new digital landscape, could significantly undermine their credibility, hindering their ability to control economic objectives within their mandate. Digitalisation is having several major impacts on the financial sector. Firstly, it is changing how businesses raise capital, moving away from bank loans and equity
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issues, towards crowdfunding and peer-topeer lending, true especially for small and mediums sized enterprises. Secondly, it is changing how money is transferred. Most money is now electronic, but currently the movement of money is executed through centralised transfer mechanisms such as SWIFT, which even FinTechs like PayPal use. It is likely that further digitisation will lead to more decentralised transfers via the blockchain. Thirdly, legislation promoting is promoting data sharing, such as the EU Payment Service Directive 2 which has increased the volume and availability of data for small non-bank financial firms. This is leading to increasing use of APIs that allow third parties to integrate data previously only available to large commercial banks. This is eroding banks’ monopoly on information, enhancing competition, but also weakening their position. Finally, large commercial banks themselves are facing competition from online only banks, who can provide services much cheaper due to not having legacy overheads.
These changes are leading to much greater interconnectedness between financial institutions, creating network and platformbased firms. Modern fintech firms, due to lower set up costs and lower barriers to entry, are small. We see an unbundling of value chains, as firms fill a particular niche and utilise economies of scale to become the best at what they do. Fintech firms form partnerships to further reduce costs and integrate multiple services, for example Monzo and Wise have formed a partnership to send money internationally. The power of platforms where these innovations are all brought together, are then increased further through network effects. Ultimately this is harming commercial banks, and the underlying unified structure they use to serve clients. This is clear from the fact that one third of banks branches have closed since 2015, whilst by contrast Neo-banks such as Monzo, are expanding rapidly, wooing 100,000 new customers per year. This is leading to commercial bank disintermediation, whereby they effectively no longer have a business model to profit from. The BoE mission is to create monetary stability, and primarily they do so through changing bank discount rates and purchasing assets from major financial institutions. Therefore, if these major
financial institutions are under threat, then the transmission mechanism is also under threat, leading to ineffective monetary policy. The technological solution I propose is therefore the Central Bank Digital Currency. It is a digital currency that is pegged 1:1 to its fiat equivalent. In other words, it is digital cash, or in effect a debit account at the BoE for all citizens. There are a number of benefits of CBDCs: first it would provide a bank account of last resort for those that are still underbanked - there are 1.2 million such people in the UK. Secondly, it would replace costly deposit insurance. Thirdly it would secure a transmission mechanism for the conduct of monetary policy. From a technological perspective, CBDCs would provide a digital framework for payments to secure the transmission mechanism. In an indirect access design, CBDCs would use open APIs to integrate seamlessly into platforms, thus spawning more competition and fitting perfectly into the digitalised financial fabric. CBDCs would provide the technological and financial plumbing for fintech platforms to flourish, whilst providing a transmission mechanism for BoE monetary policy.
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What are the effects of package holidays on the local economy and culture? Tom Binns Package holidays are a form of holidays that have only become possible due to the effects of globalisation in the last 30 years. Package holidays are, “if your travel company has asked you to pay a single price through a single payment; has let you select a combination of services – such as a flight and accommodation – before you agreed to pay for them; charged you an inclusive or total price for all the services you bought.” The surge in demand for these holidays have had a drastic impact on the local economies, but are all of these positive? In this article I will be exploring the advantages and disadvantages of package holidays. Package holidays emerged in the 1950’s but had a rapid increase in demand during the 1990’s. This was made possible by the decreased cost of air travel. This has opened holidaying up to a new sector of people who wouldn’t have previously been able to travel abroad. This alone is an advantage, but I will be mainly investigating the impacts on the host countries. According to TravelSupermarket, the most popular family package holiday destination for Britons is Tenerife for the second year running. The largest Canary Island is a firm favourite thanks to its pretty beaches, almost guaranteed sunshine and affordable family accommodation. It comes as the price of package holidays has dived this year, by up to 38%, thanks to delays in booking trips. But what are the main advantages of package holidays on this area? Package holidays can attract high volumes of people a year. In Tenerife, from 2005 to 2021 the number of people visiting the island has doubled, this can be largely put down to it being the number one destination for package holidays from Britain. This increase in visitors a year can cause more people to visit local shops a year and put more money into the local economy. This can trigger the multiplier effect and make the area overall more affluent. In addition to this, package
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holidays, due to the sheer volume of jobs created, can be a good training opportunity for the local people. A study carried out by the Manchester Metropolitan University states “An impressive all-inclusive resort can provide employment for local people with a genuine chance of progression – with the right support and training – into managerial roles that are better paid. Indeed, an all-inclusive resort in a developing country could employ far more people locally than several ecolodges ever could.” This proves that further economic growth could come from package holidays as they can create more jobs for people increasing employment, meaning more people would be on a constant wage which could mean more spending in the local area, overall providing a boost to the economy.
However good package holidays may look, there can be a lot of damage done by these types of holidays on the local culture. One crucial disadvantage of package holidays is that communities suffer from the ringfencing that happens in all-inclusive resorts. Complete with their own bars, restaurants and entertainment venues, the resorts leave guests with little or no incentive to go anywhere else, whether that is to eat in local restaurants, visit locally owned nightspots or gift shops or pay entry fees to local attractions or hire local guides or drivers.
The tour companies – few of which are owned locally – pocket most of the
which competes with the local, more traditional shops. This competition can mean many local people move to more westernised shops to gain a greater income removing the local traditions and moving to suit the tailored experience that is package holidays. Overall, there are many advantages and
spending money. This can have a detrimental effect on the local economy and mean a lot of money earned in these places (such as Tenerife) are taken from the locals. In addition to this, the conditions and wage that is paid to the locals is minimal. A survey carried out by the charity Tourism Concern on the Canary Islands said that “Hotel workers were interviewed about their working conditions. Many reported living in cramped conditions, barely earned a living wage, and were illegally kept on temporary contracts.” Furthermore, the idea mentioned earlier in the article about the possible progression for locals to managerial roles is also somewhat in jeopardy. It’s reported that 67% of managerial jobs in these package holiday resorts are taken by expatriates, who therefore take a majority of the money and leave the locals with the most menial jobs such as cleaning and food service. This further highlights the disadvantage that these forms of holidays pose to the locals and can mean the majority of economic impacts are taken away from the host country. Finally, package holidays can alienate the local culture. Many examples of this include the Caribbean, Canary Islands and Vietnam. Package holidays provide a very westernised experience and take into consideration very little of the local culture. Due to this, many westernised shops open near these sprawling resorts
disadvantages to package holidays and how they can affect the local economy and culture. However, the most overwhelming conclusion that can be drawn is that package holidays can have more economic drawbacks than they do advantages. Package holidays are tailor-made for their western audience and can lead to a complete westernisation of the local culture. Additionally, package holidays are predominantly run by foreign companies which take a vast percentage of the profits out the local economy and leave only small amounts in the form of wages. This funnelling of money out of the country can leave some tourist reliant countries with little money and is why for the majority package holidays are a disadvantage to the economy.
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The economic consequences of war Yusuf Jamil War is something we have all witnessed in our lives, perhaps without even realising it, in fact there have been roughly 117 wars across the world since 2003. Wars come with great costs, most notably the human cost. In addition, wars come with high economic costs that can be just as disastrous as the human cost for the victims. These economic costs can include damage to infrastructure, a decline in the working population, high inflation, shortages of resources, market uncertainty, a rise in government debt and disruption to normal economic activity. An alternative view is that war can ultimately bring about many economic benefits: innovation, full employment and high economic growth. In my opinion the economic costs of war greatly outweigh the benefits, as below.
A major economic cost of war is inflation, for example, during the Second World War, the US saw a rise in inflation due to its economy being at full capacity, extremely high levels of government spending and a shortage of workers. During a war, the economy can also experience cost-push inflation due to shortages of goods and services and rising prices of raw materials like oil. This is currently occurring globally as oil and gas prices surge due to the war in Ukraine. Russia’s position as the 3rd largest oil producer and the second largest exporter of natural gas globally has caused incredible price increases. Also, economic sanctions on Russia in response to the war in Ukraine will reduce supply and therefore add to the upward pressure on oil and gas prices. Economic costs of war may also take the form of a rise in government debt, since war increases government spending on equipment and defences for the army which may be financed through higher
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taxes levied on the population. To fuel the government’s spending. This will increase its borrowings, for example the UK relied on loans from the US during WW2 and took many decades to pay them off and by the end of WW2 UK national debt rose to 150% and then to 240% by the early 1950s. Finally, a major economic cost of war is higher uncertainty, causing a drop in consumer confidence reducing consumer spending resulting in lower aggregate demand in the economy. An alternative view is that wars can benefit an economy, as they create employment, demand, innovation and organisational profits. During wars, countries are usually operating at full employment, as the population support of the war effort. Furthermore, the boost in production of arms gives rise to higher economic growth and increased innovation as the government and industry invests in technology, e.g., development of the jet engine in WW2. However, in my view these perceived benefits can be rebutted, e.g., at the end of wars there is a risk of high unemployment as returning soldiers struggle to find employment which was the case in WW1. In conclusion, although demand is boosted by the money spent on the war effort, there exists an opportunity cost, rather than financing military spending, rather than making bombs the money could have been used to improve education or health care, for example, according to the New York times the opportunity cost of the Iraq war was estimated at $860 billion dollars by the end of 2009. Moreover, every benefit can be obtained without war, so are there actually any unique economic benefits to war?
Turkish inflation – 7 times higher than the UK India Aitken With inflation at 61% as of March 2022, the foreign currency, like US dollars or Euros, The economic consequences of war Turkish economy has become a very when the Lira is unstable. In response to interesting case study highlighting the this, the government announced a new Yusuf Jamil effects of monetary policy. Many economic scheme to encourage saving accounts to theories would advise that inflation this high be kept in Liras. These new savings should usually be combatted with accounts aim to protect people’s money contractionary monetary policy which from inflation, as at the end of a fixed time involves raising interest rates. As the cost period, the Turkish treasury will pay of borrowing increases, this incentivises account holders the amount they lost due people to save which reduces consumption to inflation. However, if the value of the Lira and investment. President Erdogan continues to fall and inflation continues to strongly believes in Islamic finance, which rise, the risk is the Turkish government is means he doesn’t support interest rates going to have pay millions if not billions to and has been insistent on not raising them the account holders, money which they do higher than 14%. This goes against not have. established economic theory and central This has a profound effect on the Turkish bankers and advisers in Turkey who citizens, many of whom are unable to afford haven’t supported Erdogan’s views have their lifestyle and are now having to choose been fired. between food or electricity because of the inflation. Combined with the rising oil prices due to the war in Ukraine, the cost of living is growing continuously. The government have tried to combat the rising poverty rates by increasing the minimum wage by 50% and pledging to increases subsidies for low-income households.
President Erdogan has taken three controversial approaches to handling the soaring inflation and its consequences. Firstly, the high inflation decreases the value of the Turkish Lira which makes exports cheaper, Erdogan hopes that this will encourage other countries to purchase them and encourage foreign investment. However, this strategy also makes imports more expensive for the Turkish people. This greatly effects small business who are now unable to afford the capital goods they need to aid their production, for example farmers cannot afford fertilizer needed to grow crops.
With presidential elections in June next year, and Erdogan reported to be down in the polls, these policies are his attempt at gaining popularity. He has been in power for nearly 20 years first as prime minister then as president and has made it harder and harder for the opposition to gain support. Monetary policy makers and The World Bank will be waiting to see the results of this situation.
Another factor affecting the depreciating Lira is Turks putting their money into
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Monopolies Nilaya Haldipur Monopolies are companies that dominate a substitutes. Another way in which The economic consequences of war particular industry or sector to the extent monopolies damage economies is through that all other Yusuf Jamilviable competitors are monopsony power. This exists when a excluded. Some examples are Standard Oil single buyer can dictate the prices they pay which began in 1870 and controlled almost to suppliers. They also have control over all oil production, processing, marketing, the relationship with the suppliers as their and transportation in the United States. In suppliers are typically mostly reliant on fact, by 1880 they owned 90% of the them for their business. An example of this American oil industry. would be the food retail industry in the UK with Tesco as the dominant firm. Specifically, Tesco has nearly a 30% market share of the UK supermarket industry. Many farmers are either wholly or significantly dependent on Tesco for their business. As a result, Tesco potentially has monopsony power over its suppliers. At first glance, it can be said that this type of structure is unfair to suppliers. However, we must also acknowledge the benefits that this type of relationship brings as economies of scale can occur which bring about lower costs and therefore lower prices for consumers. The company did this by acquiring all its competitors typically through unfair tactics. Another monopoly is the government salt monopoly in China which dates back to the Tang dynasty in the 8th century. The government bought all salt from Chinese suppliers at set prices and sold it to consumers. Typically, the prices for salt were high for consumers as it was illegal to sell to anyone but the government. This government monopoly was not interested in low prices and salt producers focused on corruption and bribery rather than quality products and low prices. Monopolies hold power in great quantities; however, this power does come with drawbacks. One of these is the higher prices in comparison to competitive markets. This is due to their domination. Monopolies enforce inelastic demand as there is a lack of alternatives for consumers. This means that prices can be set concerning the firms’ objectives and consumers have little choice when it comes to the purchase price, especially if the good or service is a necessity and has low or no
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Although there are some drawbacks to monopolies operating in both global and domestic economies, there are also benefits that are often overlooked. One of these benefits comes from the principle of economies of scale. They are cost advantages that are enjoyed by companies as their production becomes more efficient. Firms achieve economies of scale by increasing production and lowering costs. This fall in costs is then translated into the prices for which goods and services are sold as their prices can be lowered.
In fact, well-regulated monopolies can bring stable and fair prices to a market. It should also be remembered that the collapse of a monopoly can create a very volatile economy so the management and regulation must be carefully done by governments to ensure the economic environment is stable and growing.
Governments have a variety of methods to regulate monopolies within their economies. One of these methods includes price caps. By implementing this, the government can limit price increases, which reduces the monopoly power of firms. There is also the regulation of mergers.
In conclusion, while not all monopolies are necessarily bad in terms of the outcomes they deliver, in general, they lead to lower consumer choice, lower competition and higher prices. Looking forward to the future, technology and innovation are evolving rapidly and are naturally breaking up existing monopolies. We could see the depletion of both domestic and global monopolies as more firms enter the markets that monopolies previously dominated. Specifically in terms of the natural monopolies that control the market for natural resources, innovative technology such as renewable technology will drive a significant shift away from our finite natural resources.
This is when the competition and market authorities are involved and investigate mergers that could result in a market share of 25% or more in a specific industry. This is so that they can prevent uncompetitive outcomes in the market. Another way in which the government can intervene is by breaking up monopolies. This can be achieved by breaking monopolies into much smaller companies that then compete in a fair market. Referring to the initial example of Standard Oil, the US Supreme Court broke up Standard Oil in 1911 into independent oil companies that have continued to compete even today.
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Russia-Ukraine Conflict: Direct and Indirect effects on global supply chains Thushan Pieris InThe Marcheconomic 2022, just overconsequences two months ago, wheat harvested for consumption both of war Russian armed forces entered Ukraine to domestically as well internationally. The Yusufwhat Jamil conduct they called a ‘Special Military map shows that much of the wheat is Operation.’ Their invasion has proved to be grown in South and East, which is where costly to Ukrainian citizens as lives are still there has been the most fighting (Mariupol being lost at the hands of the Russian and Kherson). This will prevent supplies military and their economic growth has coming into Ukraine through the Black Sea been hampered. It is not only the Ukrainian and, when the wheat is harvested, make it people that are being affected, but the difficult to export the wheat as ports will invasion has also sent economic have been damaged or blocked off. For shockwaves through Europe (that are instance, Mariupol port is the principal somewhat familiar) due to both direct and export location for agriculture produce. indirect effects on the global supply chains. The United Kingdom is not as dependant on Russian or Ukrainian commodities unlike other countries, however, the unfortunate consequences of the war have impacted us too through the indirect effects on the global supply chains.
The main direct effect of the war is the disruption in the global agricultural supply chain. For instance, Ukraine and Russia are amongst the top wheat exporters in the world with their wheat being used to make basic foods such as bread or pasta. Ukraine exports its wheat to Indonesia and both Ukrainian and Russian wheat are exports to Turkey and Egypt. These crops are usually harvested in the spring, but the war has prevented farmers from harvesting efficiently. This has reduced the volume of
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The indirect effect of the war is the prices of energy sources. We rely on energy and gas and oil are the predominant sources that fuel economies. As gas and oil prices are set at an international level, the war has raised the prices for everyone. European nations have decided to boycott Russian gas and have begun to phase out Russian gas. Russia has also attempted to block Europe from buying its gas by only accepting payments in Roubles. To fill this gap, countries such as Germany who rely heavily on Russian gas, needs Middle Eastern gas to run their economies, therefore causing a larger global demand. Since the capacity of gas cannot readily increase, prices must increase meaning that caps are removed on gas prices that are paid by the consumers in order to ensure that gas companies could remain operational.
These increases, coupled with the rise of commodity prices cause a cost-of-living crisis. The price of gas is sensitive to demand fluctuations. A historical example is the aftermath of the Tohoku Earthquake in 2011. The Fukushima nuclear power plant was flooded, which led to the shutdown of all nuclear power plants until safety checks were conducted. During that period, Japan bought gas from the world market to keep up with its electricity generation. The higher demand increased the prices due to the inability to adjust the capacity to meet the demand.
who has to increase their wheat yield to meet global demand. Of course, it is far harder to increase the supply of gas, meaning that gas prices will remain high as the end of the conflict is unclear given the fact that the invasion of Ukraine began in 2014 with the annexation of Crimea. This demonstrates that whilst some impacts of supply chains can be minimised, energy supply chains cannot. The only positive outcome is that nations that are dependent on fossil fuels are looking to accelerate their plans to transition to renewable sources for electricity generation and heating, which is beneficial towards the effort of tackling climate change. As for the United Kingdom, though a small proportion of energy comes from Russian gas, prices have gone up and will remain high for the foreseeable future.
To conclude, the Russian-Ukrainian conflict shows that supply chains can be affected directly as well as indirectly from geopolitical fallouts. The consequences of supply chain shortages we have experienced have been exacerbated by the negative economic effects of the COVID-19 pandemic. Shortages could last for years as other producers have to increase their capacity, for example, the United States
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CEO of Evolve Cricket An interview with Aarush Wangoo Lower Sixth Form Trinity boy Aarush Wangoo is CEO of Evolve Cricket in his spare time. He formed the Company in January 2022 and is earning £800 per month already. Here we catch up with him to find out his inspiration and how he did it. You must love cricket?
I have played since I was 11 and was encouraged by my dad. I have represented Surrey and Kent at County level and currently part of the school’s First XI. Evolve Cricket – tell us more about what your Company does?
Evolve Cricket offers personalised one-toone and small group coaching sessions to young people, both male and female, aged between 5-13 years old. I work with four other professionally trained coaches. We include county procedures, scholarship assessments, cricket camps, and cricket tours. Our unique selling point is that we combine technology and sport. We use a website to record children’s performance by logging videos, photos and progress report for every single session. Parents can login and see what specific skills were worked on and monitor progress.
You took the role of Managing Director of the Trinity Young Enterprise Programme which started in October 2021. This is a national charity who specialise in Enterprise and Financial Education. Trinity School run this as a Club whose motto is ‘Learning by Doing’, where you setup a Company, generate ideas, run the enterprise, sell to the public, manage the finances. Did this experience give you the skills and confidence to start out on your own?
The club run by the school gives an indepth knowledge of what is involved in setting up and running a company. It is in a safe environment with supervisors to guide progress. It made the decision to setup Evolve Cricket less scary.
What is your ethos?
Our ethos to provide exceptional quality cricket coaching, which not only develops skills within the sport but also nurtures long term interest. Working closely with parents, we develop engaging relations with every single client. 'Evolve Cricket Coaching’ earns its name through our common interests of aiding all students in ‘evolving’ into the best cricketers they can be. We work diligently to maintain our excellent reputation from parents. I believe that change is a process but can be broken down into small and specific changes making a huge difference in the long runand I am all about establishing those small tweaks whilst constantly monitoring it."
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What inspired you to setup Evolve Cricket?
It was a conversation with my physiotherapist, whose son was not receiving high level coaching at a young age, and there did not seem to be targeted individual or small group coaching available. I also wanted to get more girls into the sport as I noticed there were few. What kind of income is the Company making?
Since starting Evolve in December 2021, the business' overall income has been steadily increasing and is now taking in over £800 a month after only four months.
Aarush has high hopes to reach five figures in revenue in his first operating year.
girls will feel awkward, and they’ll probably stop playing.”
What challenges have you come across?
How has Trinity School been involved?
At 17 years old, how were parents to trust my ability to coach their children, especially for county and scholarship assessments. However, I was able to overcome this by showing the results we’ve produced, and now I get referred business and are going from strength to strength.
Most of the coaching sessions take place at Trinity School. My teachers have been mentoring me through the process, which I really appreciate. “I delivered a talk at school with all the students there and I was surprised by the feedback- it’s all been really positive.” Adding: “The best part of it has been the way people come up to me and ask for advice about how to start their own thing.”
I hear you are looking to get more women involved in sport? What inspired that?
It is a combination of different events from media coverage to witnessing this issue firsthand. Figures published in The Guardian shows 1.5 million more men than women play sport at least once a week, while only eight per cent of girls are meeting recommended daily exercise guidelines compared with 16 per cent of boys. We all have a role to play in encouraging women and girls to be more active. Another study into women's participation in Cricket found that "boys were commonly reported to be a barrier to participation in sport in general and specifically to cricket" for girls. It outlined that "consistently, research has established that males sometimes tease the females, intimidate them and are too competitively focused." Aarush is hoping to help tackle this pattern. He is offering girls group sessions which he makes no profits from as well as having a professional cricketer attend and hold training sessions. He said: “Now, more and more clubs are encouraging girls to play but before it was just 10 boys and one girl and obviously the
(Image: BeauBrendon) So, is this venture your dream career?
I would love to become an investment banker while overseeing Evolve Cricket’s continued growth. You can follow Aarush on his journey on his website evolvecricket.com and Instagram page @evolvecricket.
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What happens when things don’t go to plan: Restructuring Services An interview with Philip Reynolds Philip gained a BA(Hons) in Business Studies from De Montfort University, then qualified as an Accountant (ACCA) before taking his Joint Insolvency Examination Board exams (JIEB) to enable him to take formal insolvency appointments (to act as a Liquidator/ Administrator for Companies or as a Trustee for individuals facing Bankruptcy). Phil worked at PwC (5years), KPMG (4years), Deloitte (13yrs) and is currently a Partner with FRP Advisory (4+ years), specializing in Corporate Restructuring Services and Turnaround management. Businesses get into financial difficulty across the World, so my career has taken me to working in London, Singapore, Dubai, and a variety of lovely industrial estates! What is Restructuring Services? Most companies will face difficult financial challenges at some time. Those challenges can range from simply “underperforming” through to crises threatening viability. Business failure in economic terms is important as it aids the reallocation of capital to more efficient use. Businesses as with individuals have a life cycle from formation, growth, decline to closure. This can be seen if you look at the changes in the FTSE 100 index through mergers, failures, promotions, demotions, new listings, and globalization - the FTSE 100 has less than 28 of its original members still in the index. My work is to help businesses to restructure their finances and operations to improve their balance sheet and to see if the business can be restored to viability - this can include both debt restructuring by agreeing the rescheduling or waiver of debt (or its conversion to equity), the injection of new equity through to measures to cut costs or realize non-core assets (e.g. the sale of a subsidiary or division). If this is insufficient to restore a business to viability, the objective turns to maximizing the returns to creditors from the failure typically by way of a going-concern sale of the trade and assets out of the legal entity or by disposing of the company’s assets (a liquidation). Why might a company need a Restructure? Restructuring is a process where a company develops and implements a plan to improve its financial position to save the business. It will
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involve improvements in business operations and interaction with all the company’s stakeholders (financial creditors, trade creditors/ suppliers, customers, employees and potentially local and/or National Government). Restructuring can be a tumultuous, painful process as the internal and external structure of a company is adjusted, which often requires job losses. But once it is completed it should result in smoother, more economically sound business. After employees adjust to the new environment, the company should be in a better position to achieve its goals Are there any special considerations to be taken into account when restructuring? The key is time; if a company approached me saying they can’t pay the wages at the end of the week, the options are limited. However, if a Company anticipates an issue in 9 months as its forecasts show that it will then breach its banking requirements, then you have a better chance to rescue the business. Examples of Restructuring: FRP secures £23 million Wensleydale cheese sale The business was carrying unsustainable levels of debt and had incurred c. £1.6 million of losses. Relationships between the shareholders, directors and the bank had broken down, and the quality of operational and financial management was poor. FRP appointed interim management to help to turnaround the business, with a view to a potential sale. FRP developed a business recovery plan focused on reducing debt levels and were able to demonstrate that performance was stronger than expected. Short-term banking support was secured to run a twintrack process, completing a trade sale with identified buyers while also delivering a business plan and restructuring debt with the bank and shareholders. A new Financial Director was appointed to improve systems and reporting. A successful sale of Wensleydale’s
business and assets to Saputo Dairy Crest Limited (SDUK) was secured for £23 million, realizing between £7-8 million for shareholders and repaying the bank in full. Another Example of Restructuring: FRP team traces bankrupt trader’s hidden assets The former high-net-worth individual had been a successful trader with substantial evidenced earnings. Following the extensive use of aggressive but ultimately failed tax avoidance schemes, he had built up significant debts to HMRC. While he was believed to have had substantial assets immediately prior to his bankruptcy and his divorce shortly before that, he declared nil assets in his bankruptcy estate, attributable mainly to his allegedly acrimonious divorce. FRPs insolvency team conducted an extensive review of the bankrupt’s affairs, including banking records from numerous foreign and domestic banks, solicitors’ and accountants’ records, land registry records, and many other sources of information, to build a comprehensive account of his financial history and trace material property transactions. Partnering with a trusted corporate intelligence specialist, the team investigated the individual’s conduct and relationship with his ex-wife and a new partner. The teams’ enquiries revealed a wide network of trusts, offshore accounts and third parties that had enabled the bankrupt to dissipate his estate in anticipation of his substantial tax debts and ultimate self-initiated bankruptcy. A monetary settlement was reached with the bankrupt’s ex-wife for the transfer of multiple UK and overseas properties prior to bankruptcy. Freezing injunctions and a subsequent judgment were also obtained against his new partner regarding transactions at undervalue as a result of assets and funds transferred to her, both of which enabled the team to recover funds and make a substantial dividend payment to the bankrupt’s creditors. What is changing in your business? The lending landscape is changing with growing impact of the Alt-Fi/Fin-Tech sector as well as the proliferation of debt funds. My work has changed over mainly helping the main clearers to a far wider collection of financial lenders, which can add additional complexity to a restructuring. What else do you do when you are not fixing the failing Organisations?
I have a particular interest in the charity and not-for-profit sector where I am able to put my skills to good use. I have taken a voluntary board position with Chisel Housing Association a small housing association in SE London for people in housing need and on low incomes including a number of self-build developments. They have significant challenges due to the impact of Covid-19 and the impact of the Grenfell Fire Disaster. Recent regulatory pressure in Restructuring Within the last year, and due to some corporate accounting scandals, Deloitte and KPMG decided to sell their restructuring arms amid pressure on the big four firms to eliminate conflicts of interest between their audit and consulting operations. A white paper on audit reform is expected to be published by ministers in the near future. What does Restructuring?
the
future
hold
for
Insolvencies are expected to rise as companies continue their staggered recovery from the pandemic. The withdrawal of government support programmes is likely to leave thousands of companies vulnerable to financial shocks, with supply chains in chaos (due to Brexit and the Pandemic) and input costs soaring because of inflationary pressures. What advice can you give to students if this type of career appeals to them? If you are interested in a career that combines people management, financial analysis, and a detailed understanding of the law and that can be very challenging but rewarding, then a career in restructuring could be for you. The typical route is through starting on a training contract for an accountancy qualification to get the financial grounding required and to have some experience of business. There is a more direct entry via apprentice, post A-Level and direct graduate level. If you can demonstrate you have good excel/ analytic skills, that will help. However, businesses fail because of people, so strong inter-personal skills and the ability to help bring disputing parties together is vital – a lot of the time my job is more akin to being a corporate marriage guidance counsellor rather than being an accountant!
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The Economics Pathway 4 Years After Trinity An interview with Nivashinie Logeswaren Nivashinie attended Trinity School 2016–2018 A-Levels Maths, Economics, Tamil, Further Maths, French, EQP (A*A*A*AAA) BSc in Economics at University of Warwick 2018-2021 Work shadowing Foreign Exchange Trader at Deutsche Bank. Summer Intern at J.P. Morgan (Dec 2019-Sept 2020), then Incoming 2021 Graduate Analyst since Sept 2020
Many of our readers are in the process of deciding what they would like to do post Trinity. Some may be interested in apprenticeships; others may want to pursue a degree at university. So, my first question - what was your favourite part of your degree? I enjoyed the flexibility of the degree, especially the ability to choose between having a maths-based degree/ more theoretical and essay based/ combination of both.
Graduate programs are usually rotational, so I like the rotational nature, especially because we can try different roles to see what best suits my skills and interests. What was the most interesting question you received at your university or Job Interviews? Tell me something that struck you in the news. How many water-bottles can I fit into this room?
If you were to go back in time, what would you do differently regarding university?
What advice would you give to your younger self with regard to your university or starting your Economics career?
I would choose modules I was genuinely interested in rather than just because others say it is “easy.”
Pick what genuinely interests you and look at combined courses too if more than one thing interests you
What career paths were you considering after university? What did you choose in the end? Why? Was not too sure so applied to a broad range of roles which played to my interests and strengths. Now working in a finance and business management role at JP Morgan.
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What do you like the most about your job?
One last question - macro or micro? (or something else completely) Applied economics favourite module at university was looking at the economics of healthcare!
The Economics Pathway 3 Years After Trinity An interview with Brandon Man Brandon attended Trinity School 2011–2019 BSc in Economics & Accounting at University of Bristol 2019-2022 Incoming Private Equity Analyst, University of Bristol
Why an Economics degree? An Economics degree included the A-Level subjects I most enjoyed - Economics and Mathematics. The technical knowledge for finance roles is taught in an Economics degree rather than on other courses. A candidate with an Economics background is better able for the more technical questions asked by interviewers. The door is also left open for careers outside of finance, like FMCG, consulting, and law. I strongly recommend a Joint Honours programme, where you can get broader exposure to two areas of interest - e.g., Economics & Finance, Economics & Mathematics, Economics & Politics, etc. If you were to go back in time, would you do anything differently? The most beneficial thing I did to prepare for my university application was attending external talks covering topics outside of the A-Level content. These are often free to attend and hosted by organisations such as LSE. Securing finance-work experience in sixth form allows for a more personalised application that demonstrates how you have developed your interest in Economics. What was the best part of your degree? "Principles of Finance” has been the favourite module - it combined ideas from Economics and Mathematics and applied them to aspects of finance which are relevant for the career I am hoping to pursue. I learnt about capital structure, portfolio management, hedging with financial instruments and the stock market.
What career paths were you considering after university? What did you choose in the end? Why?
I would like a career in Investment Banking, Private Equity/ Venture Capital. I enjoyed an internship in Investment Banking in 2021 and have an another lined up in Private Equity for 2022
What books/podcasts do you enjoy? The Financial Times is a great resource. “The Intelligent Investor” by Benjamin Graham, “Freakonomics” by Stephen Dubner / Steven Levitt. Finance podcasts like "Wall Street Oasis" (for insight on careers in the city), Morgan Stanley’s “Thoughts on the Market” and Goldman Sachs’ “Exchanges at Goldman Sachs” (for insight on the markets).
What was the most interesting question you received at an Interview? Non-technical question was “assuming we are in a COVID-free world, how many planes are there in the sky right now?” I had to talk through my assumptions and calculations (guessing a figure with no explanation would not suffice).
What advice would you give to your younger self? At university, explore all elements of the university experience - from academics to social and night life, to sports and careers. Push yourself outside your comfort zone and give things a go. For those wanting to break into competitive city professions, I would also advise students to prioritise their career endeavours over their academics in first year. Breaking into these roles early is key.
One last question - macro or micro? (or something else completely) I prefer Microeconomics because the topics tend to incorporate more mathematical theory and concepts. It also explores the human psyche with decision making and consumer preferences which I find interesting.
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The Economics Pathway 5 Years After Trinity An interview with Usmaan Jamil Usmaan attended Trinity School 2009–2017 A-Levels: Maths, Economics, Biology BA, Politics and Economics (Joint Honours) at University of Nottingham 2017-2020 Associate, Grant Thornton UK LLP since Jan 2021
What was favourite part of your degree? While many of my friends and classmates at Trinity went on to study Economics as a standalone subject, I was drawn to the idea of complementing the analytical nature of the subject with something a little different. Although a degree is often an extension of your A level studies, I opted to pair Economics with Politics, a subject I had no previous experience of as an academic discipline. Pairing the familiar with the unfamiliar was what kept my degree interesting. The most interesting module I took was Behavioural Economics where the concept of economic nudges were discussed. The Professor lecturing was an expert in the field, so it was great to learn from someone at the forefront of the field. If you were to go back in time, what would you do differently regarding university? Although living out in Nottingham was a great experience and made me a better person, I did miss London life and its multiculturalism. You really take going to a school like Trinity for granted where people from all walks of life integrate so well. Perhaps I was a bit naive to expect this at University - I guess Croydon isn't so bad after all! What career paths were you considering after university? What did you choose? Why? I always knew I wanted to pursue a professional qualification after university and that proved helpful in knowing where to apply. I'd seen a few family members have success and stability in an accounting career and although the glamour of
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investment banking was tempting (as it is for most graduates!), I knew deep down it wasn't for me. Thankfully, after some inspiration (mostly perspiration), I was able to land a graduate accounting role at Grant Thornton in London. What do you like most about your job? The best part of my job is the constant learning. It was uncomfortable at first coming into a new firm with no accounting background (in the middle of the pandemic), but you naturally rise to the challenge, and I learn something new every day which is great from a development perspective. Equally, the large graduate intakes in audit mean that support from colleagues is never far away, this is especially important during exam season where stress levels inevitably rise. What was the most interesting question you received at your University/ Job Interview? "How might advancements in AI impact our business?" I wish I could remember how I answered this question, but it seems like a distant memory now! What advice would you give to your younger self-regarding university or starting your Economics career? (1) Know yourself. (2) Don't sell yourself short. (3) Engage with your subject One last question - macro or micro? (or something else completely) Easy one for me... Macro!
The Economics Pathway 5 Years after Trinity An interview with Nathan Thomas Nathan attended Trinity School 2009-2017 A-Levels Economics, Maths, Spanish (A*A*B) BSc Hons, Economics (with placement) at the University of Bath 2017-2021 Now a Graduate at Fidelity International on the Fixed Income rotational scheme.
What was favourite part of your degree? Econometrics (contrary to popular opinion), which is Statistics for Economics. I really like working with numbers and learning techniques like regression where I was able to apply my A-level Maths skills meant that I could excel in this module and enjoy it. If you were to go back in time, what would you do differently regarding Uni? I would speak to the lecturers to ascertain exactly what they want in an exam/piece of coursework. Unlike school exams, Uni module outcomes can be very much tailored to the lecturer’s preference, without a universally accepted mark scheme to follow. Therefore, knowing exactly what type of detail the lecturer likes will help you on the way to getting the top grade. What career paths were you considering after Uni? What did you choose? Why? In my first year, I went to my university careers fair with an open mind to see what kind of options I had. I managed to get some exposure to investment banking via a “Spring Week”, and then became interested in Finance. Later, I did a placement year at an investment management company, and this reaffirmed to me that this type of job would be for me. I enjoyed the challenging nature of the work, however, there was also a strong sense of responsibility in that I was effectively a fiduciary for clients’ money. What do you like most about your job? One of the best aspects of my job is the amount of exposure I get. One day I could be speaking to the CEO of a multi-million-
dollar company about future strategy, another day I could be creating a model to better understand how a company operates. Even as a graduate, the work that I do matters and has a huge business impact, which encourages me to always bring my best to the job. What was the most interesting question you received at your Uni/Job Interview? “If you look at a clock and the time is 3:15, what is the angle between the hour and the minute hands?” A brain teaser - I was asked this for my placement year interview! P.S: (answer is 7.5 degrees!) What advice would you give to your younger self-regarding university or starting your Economics career? Apply to schemes like spring weeks, summer internships and placement years early. These experiences can help better understand whether you’d like to do that type of job in the future or not. Don’t worry if you’re not sure exactly what career you’d like. It’s important to get some experience for your CV, to get into the job you want (it’s super competitive right now!). One last question - macro or micro? (or something else completely) Macro is good as it allows you to view a wide range of geographies, demographics and regimes, but Micro is interesting as you can better understand how a business actually operates. My favourite is still Econometrics. If I had to choose, I’d say Micro, as in the finance industry you need to understand financial statements and how an underlying business works.
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Further Reading Jared How many transactions per second can Bitcoin process? By Jeffrey Craig https://phemex.com/blogs/what-is-transactions-persecond-tps
Smart contracts by Jake Frankenfield www.investopedia.com/terms/s/smartcontracts.asp#:~:text=A%20smart%20contract%20is%20 a,a%20distributed%2C%20decentralized%20blockchain% 20network
Josh Puckett, J. (8th August 2019) Iceland’s tourism numbers are dropping - and wow air is to blame https://www.cntraveler.com/story/has-wow-airsdemise-killed-icelands-tourism-boom
Nichols, P. (12th September 2018) How Iceland dealt with a volcanic financial meltdown https://knowledge.wharton.upenn.edu/article/icel ands-economic-recovery
Lev https://monzo.com/blog/2018/06/25/monzointernational-transfers https://www.theguardian.com/money/2019/sep/24/m ore-than-a-third-of-uk-bank-branches-have-closedsince-2015 https://www.ft.com/content/9e9bbe27-2dac-447ba015-b2cd3bc9c868
https://www.which.co.uk/money/banking/switchingyour-bank/bank-branch-closures-is-your-local-bankclosing-a28n44c8z0h5 Bank of England, 2020 Central Bank Digital Currency Opportunities, Challenges And Design https://www.bankofengland.co.uk//media/boe/files/paper/2020/central-bank-digitalcurrency-opportunities-challenges-anddesign.pdf?la=en&hash=DFAD18646A77C00772AF 1C5B18E63E71F68E4593
Jay Demand for apartments is flatlining in Britain | The Economist
Is the office finished? | The Economist The rise of working from home | The Economist
Covid-19 has forced a radical shift in working habits | The Economist
Thaushan https://www.nytimes.com The Economic Cost of War in Iraq and Afghanistan - The New York Times https://www.iwm.org.uk
HistoryTimeline Of 20th And 21st Century Wars | Imperial War Museums https://www.ukpublicspending.co.uk UK National Debt As Pct GDP for United Kingdom 1950-2010
Nilaya https://www.economicshelp.org/microessays/market s/monopoly/ https://www.ft.com/content/78762494-d0c7-11e69341-7393bb2e1b51
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https://www.crf-usa.org/bill-of-rights-in-action/bria16-2-b-rockefeller-and-the-standard-oilmonopoly.html https://www.retail-week.com/data/kantar-grocerymarket-share?authent=1
Please note the Trinity Economic Review team and Trinity School, assert no claim over the photographs, diagrams, or data used in the publication.
Economic Quotes Debt is one person’s liability, but another person’s asset.
The key to making a good forecast is not in limiting yourself to quantitative information.
Paul Krugman (American economist)
Nate Silver (American statistician)
The first lesson of economics is scarcity: there is never enough of anything to fully satisfy all those who want it. The first lesson of politics is to disregard the first lesson of economics. Thomas Sowell (American economist, political philosopher, author & Nobel Prize Winner)
When you look at the predictions made during the peak of the boom in the 1990s, about ecommerce, or internet traffic, or broadband adoption, or internet advertising, they were all right – they were just wrong in time. Chris Anderson (Author for ‘The Economist’) It turns out that advancing equal opportunity and economic empowerment is both morally right and good economics, because discrimination, poverty and ignorance restrict growth, while investments in education, infrastructure and scientific and technological research increase it, creating more good jobs and new wealth for all of us. Bill Clinton (42nd president of the USA 1993-2001)
The reason we should do a carbon tax is because it’s the right thing to do. It’s economics 101, elementary stuff. Elon Musk (Entrepreneur & business magnate)
Many individuals are doing what they can. But real success can only come if there is a change in our societies and in our economics and in our politics. David Attenborough (Broadcaster & Naturalist)
People tend to think that numbers are quite objective, but numbers in economics are not like this. Some economists say they’re like sausages: you don’t know what they really are until you cut into them. Ha-Joon Chang (Economist & author)
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Interviews and Edited by
Jay Rabheru