Economic puzzle
Economic puzzle
A puzzle in macro economics is a situation where the outcome of theory is inconsistent with observed macroeconomic data.
An example might be the Equity premium puzzle which relates to the fact that over the last two hundred years, the risk premium of stocks over bonds has been around 5.5%, much larger than expected from theory. Equity Premium Puzzle was first documented by Mehra and Prescot (1985).
Some english vocab
Word:Iconoclast (Noun)
Definitions: a destroyer of images used in religious worship
Synonyms:
Unbeliever, Radical
Antonyms:
Believer
Example Sentence:
The popular columnist was an iconoclast who avidly attacked public figures no matter which political party they were affiliated to.
A puzzle in macro economics is a situation where the outcome of theory is inconsistent with observed macroeconomic data.
An example might be the Equity premium puzzle which relates to the fact that over the last two hundred years, the risk premium of stocks over bonds has been around 5.5%, much larger than expected from theory. Equity Premium Puzzle was first documented by Mehra and Prescot (1985).
Some english vocab
Word:Iconoclast (Noun)
Definitions: a destroyer of images used in religious worship
Synonyms:
Unbeliever, Radical
Antonyms:
Believer
Example Sentence:
The popular columnist was an iconoclast who avidly attacked public figures no matter which political party they were affiliated to.