Economics

I know nothing about this area.

Papers

• The Use of Knowledge in Society
• Risk, uncertainty and profit (1921)
• Path dependence
  • The Path Matters
  • Increasing Returns, Path Dependence, and the Study of Politics
• Money creation in the modern economy

The Cantillon Effect.

Money takes a path through the economy. For example, when inflation occurs, governments sell government bonds to the central bank. The central bank can then use this influx of capital to increase/lower interest rates on their loans to the private banking sector (like Westpac, ANZ). The increase in money for these commercial banks allows them to purchase equities, increasing their price, before passing on the interest rate to consumers, who later do the same. This entire process is described as the Cantillon Effect. The path that money takes is extremely important.

Economy.

• scarcity - time
• utility
• productivity = technology
  • how many hours work does it take to get 1hr of light? now vs. 1800.
• price = demand/supply.

Macro.

Risk ladders.

• bitcoin
• gold, silver
• reserve asset currency (USD)
• real estate
• S&P 500
• stocks
• crypto

Constant demand.

What will demand remain constant for?

• housing
• groceries
• electricity (light, heating, cooling)