In listening to discussions about markets and economics you seldom hear the word complexity. Most economic theory tends to be linear in construction. Markets, however, consist of very complex systems. Because of its importance in understanding markets, I want to offer a brief introduction to the concept of complexity. I will get back to this … Continue reading Introduction to Complexity
Month: March 2018
Trade Deficits: An Introduction
President Trump’s threat to impose tariffs on steel and aluminum has triggered a blizzard of articles for and against the proposal. Instead of parroting what has been said by others — mostly empirical evidence, I want to give you the tools with which to understand the issue behind the proposed tariffs: “trade deficits.” Definition To … Continue reading Trade Deficits: An Introduction
Federal Finance Made Easy
It never ceases to amaze me how people misunderstand the process of financing the federal government. The ridiculous economic stimulus programs that the government frequently adopts provide just one example. I thought that a simple explanation of the dynamics of government finance would help readers understand how this system works. How the Government Spends Money … Continue reading Federal Finance Made Easy