Price Determination—Part Two

Now that we have a precise definition of the word “price,” we can discuss price determination (or priced discovery) of what we refer to as “market price.” We can understand the determination of an individual price by understanding the previously discussed definition of “price.” The individual price results simply from the agreement between buyer and … Continue reading Price Determination—Part Two

Nations Cannot Win or Lose Trade Wars

Nation-states have no resources of their own. They redistribute the resources of their citizens. Nation-states can neither win nor lose when they play with other people's resources. Tariffs and other weapons of trade wars disrupt normal trade; helping one group at the expense of another. Illusion of Trade Deficits The concept of trade wars begins … Continue reading Nations Cannot Win or Lose Trade Wars