Accounting

Accounting for Climate Risk: Integrating Environmental Factors into Financial Reporting

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As climate change becomes an increasingly material risk for corporations, investors, and governments, the field of accounting is undergoing a major transformation. Climate-related financial risks—ranging from extreme weather disruptions to carbon pricing and stranded assets—are now recognized as significant factors influencing a company’s financial position. This article explores how climate risk is being integrated into financial reporting, the emergence of climate disclosure frameworks, and the accounting standards evolving to meet this global challenge.… Read more
Taxation

Digital Currencies and the Future of Taxation: Challenges and Opportunities

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The rise of digital currencies—ranging from decentralized cryptocurrencies like Bitcoin to government-issued Central Bank Digital Currencies (CBDCs)—is transforming global finance. While these innovations promise efficiency, financial inclusion, and transactional speed, they also pose unique challenges to tax authorities. This article examines how digital currencies affect tax policy, compliance, enforcement, and international cooperation, while exploring strategies to adapt taxation systems for a digital monetary future. The Tax Complexity of Cryptocurrencies Cryptocurrencies blur the lines between currency, asset, and commodity.… Read more
Economics

The Economics of Inflation Targeting: Theory, Practice, and Global Experience

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Inflation targeting has become one of the most widely adopted frameworks for monetary policy since its emergence in the early 1990s. Under this approach, central banks commit to maintaining inflation within a specified range—typically around 2%—and use interest rate adjustments as their primary tool. This article examines the theoretical foundation of inflation targeting, reviews its global implementation, analyzes its effectiveness, and discusses its limitations in the context of recent economic shocks.… Read more
Economics

The Informal Economy: Structure, Drivers, and Policy Responses

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The informal economy—comprising economic activities that are legal but not regulated or taxed by the state—accounts for a significant share of employment and output, especially in developing countries. Often described as the “shadow economy,” it includes everything from street vending and home-based work to unregistered businesses and gig labor. This article explores the structure, causes, and consequences of informality, as well as strategies governments are deploying to encourage formalization without undermining livelihoods.… Read more
Finance

Green Bonds and Sustainable Finance: Catalyzing a Low-Carbon Economy

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Green bonds—fixed-income instruments earmarked for environmental and climate-related projects—have rapidly emerged as a key pillar of sustainable finance. By channeling capital toward green infrastructure, clean energy, and climate resilience, green bonds offer a way to align capital markets with environmental goals. This article explores the evolution of green bonds, their structure, market growth, economic impact, and the regulatory challenges in ensuring their credibility and effectiveness. What Are Green Bonds? Green bonds are debt securities issued to finance or refinance projects that generate environmental benefits.… Read more
Finance

The Rise of Central Bank Independence: Theory, Practice, and Contemporary Challenges

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Central bank independence (CBI) has become a cornerstone of modern macroeconomic policy, credited with reducing inflation, stabilizing financial markets, and fostering long-term economic credibility. As global economies confront rising debt, populist pressures, and climate change, the role and autonomy of central banks are increasingly under scrutiny. This article explores the theoretical foundations, empirical outcomes, and current debates surrounding central bank independence, with a focus on institutional design, political accountability, and future risks.… Read more
Economics

Who Owns America’s Debt in 2024–2025

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The United States has amassed a record-high national debt, approaching roughly $35–36 trillion by early 2025. This debt is the sum of all outstanding U.S. Treasury securities – the bedrock instruments of global finance – and it is owed to a wide array of creditors. Broadly, America’s debt is held by domestic entities (including U.S. government accounts, the Federal Reserve, banks, mutual funds, pensions, and individuals) and foreign investors (ranging from foreign governments to international investors).… Read more
Economics

Decentralized Finance (DeFi) and Its Disruption of Traditional Economic Structures

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Decentralized Finance (DeFi) has emerged as one of the most disruptive innovations in the global financial ecosystem. Built on blockchain technology, DeFi platforms eliminate traditional financial intermediaries, offering peer-to-peer financial services such as lending, trading, and insurance. This article critically examines the theoretical foundations of DeFi, assesses its macroeconomic implications, explores regulatory responses, and evaluates real-world data and case studies from the evolving DeFi landscape. Theoretical Underpinnings and Economic Rationale DeFi is grounded in the principle of disintermediation—removing centralized institutions like banks, brokers, and insurance firms to reduce costs and increase transparency.… Read more
Economics, News

Analysis of Trump’s 2025 Reciprocal Tariffs: Likely Outcomes and Global Implications

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President Trump’s April 2025 announcement of a sweeping reciprocal tariff policy—anchored by a 10% baseline tariff on all imports, with the potential for higher country-specific rates—marks a significant and controversial reorientation of U.S. trade strategy. This policy is intended to address long-standing trade deficits and perceived unfair trading practices by demanding that foreign governments match the United States’ tariffs and open their markets to American goods at levels deemed equitable. The administration frames the move as part of a broader “America First” economic agenda, designed to bolster domestic manufacturing, reassert national economic sovereignty, and reduce reliance on global supply chains that, according to its architects, have hollowed out American industry and exposed vulnerabilities in times of crisis.… Read more
Taxation

Emerging Jurisdictional Responses and Tax Policy Shifts

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In response to Pillar Two, jurisdictions are adjusting domestic tax laws to retain competitiveness while complying with GloBE standards. Some countries have adopted or announced “Qualified Domestic Minimum Top-up Taxes” (QDMTTs), which allow them to collect the top-up tax domestically before it is claimed by other jurisdictions under the IIR or UTPR. For example, Australia introduced legislation in 2023 for a QDMTT effective in 2024, ensuring any top-up tax owed by Australian subsidiaries of MNEs is paid locally.… Read more
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