Economics, simply put

 

There is a limit to the amount of information that a person can absorb. This means that choices which they believe to be informed and rational can look irrational to someone with greater knowledge. As any behavioural economist worth their salt could tell you, this theory of decision-making is known as “bounded rationality”.

 

But you’d be forgiven for not knowing that. Economics is littered with complicated-sounding ideas that, once grasped, help to make sense of the world. So we have published a glossary of economic terms, explained in plain English. Our A to Z of economics includes almost 500 cross-referenced entries. Some link to longer explainer articles exploring the topic in more detail. And we’ll keep adding to the list. So the next time you’re puzzled by the Nash equilibrium or struggling to explain quantitative tightening you’ll know where to look. We hope it offers you an absolute advantage (which is also, conveniently, the first entry on the list).