My intention with this post is to convince you on how interesting working in economics really is. Being Friday and a beautiful day here in Oslo, I do realize that there are many distractions, but I will try nonetheless.
Before we start, I have to admit that I am slightly biased. Having only one year left of my master degree in economics from the University of Oslo, I am probably more than commonly interested. Furthermore, I have been so lucky that I have had the opportunity to work on economics along with talented colleagues here in Nordea Markets in general, and in the Macro department in particular.
Back to economics – why is it so fascinating? The easy answer is because there is so much variation. On one hand, economics are defining the framework for so much else. For instance, the rent you have to pay on your mortgage, your annual wage raise, the public services provided and the framework for business life. History has shown us time and time again how relatively small disturbances can have a butterfly effect on the global economy. How defaulting mortgages in the US may start a nearly insane increase in Spanish unemployment. On the other hand however, there are so many factors having impact on economics as well: Political institutions, bureaucracy, irrational public decisions and geopolitical issues, to mention just a few.
The last couple of months with conflicts in the Middle East have inflated the oil price by nearly 10%. “And so what?” you might say. Well, an increase of 10% in the oil price over time decreases the global GDP by roughly 4%. Too abstract? OK, let’s make it personal. The price you have to pay for tanking your car is directly linked with the stock market oil prices. This means that the actions of a relatively small militant group in the Middle East influence the cost of driving in Scandinavia. All because of global economics.
Still not convinced? That’s fine. There is so much more to be interested in and to work with. Like the impact of monetary policy, regulation and use of sovereign wealth funds, like the Norwegian oil fund, the creation of bubbles, macro’s impact on financial markets, financial markets’ impact on macro and much, much more. And all of this is changing all the time.