MIT-WPU Economics Blog

Market players, both new and seasoned, take great pride in asserting that their emotions don’t cloud their judgement when it comes to trading. Even though discussing emotions in relation to stock market trading is rather taboo, traders are still humans, and humans have emotions. When it comes to emotions, our autonomous nervous system, which is also a member of our peripheral nervous system, is what causes them to develop. Epinephrine and norepinephrine, which circulate throughout the body and trigger physical changes like an accelerated heart rate, are generated by the sympathetic nervous system. Whether or not we accept that emotions are what propels the stock market, they have the potential to shift the trend from bullish to bearish or vice versa. While making financial decisions, every trader experiences a range of emotions. Even while traders may believe they know what will happen, they don’t since the financial market is full of surprises and is dominated by tails or outliers...

India is a country filled with diverse cultures, languages, and religions so it is called a secular country. The multiple religions practiced in India, the conflicts which arise due to it, and the constant panic-harmony situations caused by it have intrigued me a lot which also led to further inquisitiveness about how religious India affects the economy of the country. As a to-be economist, the question arises do these religions create a hindrance in the path of development or positively influence the economy arises in my mind. To evaluate this, various economic theories and statistical tools are used by eminent researchers and economists. They note that the economy of a country is either adversely affected or positively influenced because of various factors, and religion is prominently one of them. Sriya Iyer, the author of the book ‘Economics of Religion’ explains the religion factor through the demand and supply theory wherein religion is considered to be the economic market, de...