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Showing posts with the label gold mining

Decision Making as Output and Bounded Rationality

  The classical economics theories proceed on the assumption of rational agents. Rationality implies the economic agents undertake actions or exercise choices based on the cost-benefit analysis they undertake. The assumption further posits that there exists no information asymmetry and thus the agent is aware of all the costs and benefits associated with the choice he or she has exercised. The behavioral school contested the decision stating the decisions in practice are often irrational. Implied there is a continuous departure from rationality. Rationality in the views of the behavioral school is more an exception to the norm rather a rule. The past posts have discussed the limitations of this view by the behavioral school. Economics has often posited rationality in the context in which the choices are exercised rather than theoretical abstract view of rational action. Rational action in theory seems to be grounded in zero restraint situation yet in practice, there are numerous restra

Gold- Brief Overview

Gold has a history dating back to 4000 B.C. with traces of usage in Eastern and Central Europe. By 1500 BC, it had become a medium of exchange in Egypt. Gold mines were predominantly located in Asia Minor though later by 500 A.D mines were discovered in Central Europe and France. Gold was widely used in Central and South America . In the 16 th and 17 th centuries, Spanish conquests to Central and South America and subsequent massacre of local population were linked to bring back gold from Central and South America. Gold was discovered in US in the late 18 th Century. US linked dollar to gold in 1792 which was to continue till 1973. Explorations of new lands led to finding of gold in Australia and Southern Africa . History of gold as a money spanned from about 700 BC till about 1930. The First World War (1914-18) and the Great Depression of 1929 resulted in many countries abandoning the gold standard. In 1933, President Roosevelt of the US banned gold exports, halted the con