economics

Economists weren’t always so mixed up. In his classic 1944 book, International Currency Experience , Ragnar Nurkse wrote that “the devaluation of a currency is expansionary in effect if it corrects a previous overvaluation, but deflationary if it makes the currency undervalued.” Tariffs, which are close cousins of currency devaluation, act in the

Rational investors are unable to impose their views on the market as the capital cycle poses a number of “limits to arbitrage.”

Or take Earth AI. What’s the Why Now for Earth AI?

When Roman started the company in 2017, machine learning had finally gotten good enough that it was possible to analyze huge amounts of data to identify mineral targets just as the amount of new discoveries using traditional methods plummeted. While the company’s drilling rigs don’t rely on

economy. China is an investment-driven economy. The trade surplus is a residual result of investment-related policies that force up the savings rate to levels above the investment rate.

Measured impact: These distortions are estimated to lower China’s overall productivity by about 1.2 percent, translating to as much as a 2 percent reduction in GDP compared with a no-subsidy scenario.

With regards to the workings of the capital cycle, investors focus on current (and projected) future profitability but ignore changes in the industry’s asset base from which returns are generated.

In the event, G5 policy makers met to forestall a crisis and hammered out the 1985 Plaza Accord , designed to bring down the runaway dollar. It worked! Some would argue too well, because the subsequent 1987 Louvre Accord was forced through to brake the skidding dollar.

On the one hand, equity markets benefit from higher-than-expected inflation via nominal GDP, but on the other, they also suffer from higher-than-expected costs. This combination of features is often what leads equities to look like a real growth asset, i.e., one that benefits from real growth conditions rather than nominal ones. While this serves