economics

Economists, for all their stereotypes, have one superpower that data scientists could really use: they see the world in terms of trade-offs, incentives, and equilibrium. They don’t ask what is happening; they ask why it’s happening, and what would happen if something changed .

Data scientists, on the other hand, are often trained to predict. The

TFP is long-term and thematic in nature. It is positively affected by new technology and negatively affected by overhangs which slow organic value creation such as burdens on business, commodity price inflation, or an overhang of debt.

The Eurodollar market was the name given to the market surrounding the dollar accumulation in the banking system outside the United States during the “dollar glut” period of low U.S. interest rates in the 1960s.

underlying imbalances that explained the sources of growth in the global economy,

characterize two types of recessions.

-The first type of recession leaves most people relatively unaffected, but is really bad for the much smaller subset that lose their jobs. This is a classic disinflationary developed market recession.

-The second type of recession spreads the pain a bit more broadly. Perhaps a third or half of people are

The firms attacking from value networks below brought with them cost structures set to achieve profitability at lower gross margins. The attackers therefore were able to price their products profitably, while the defending, established firms experienced a severe price war.

Go down the list of historical investing blunders, and I’m telling you, no less than 90 percent of them are caused by investors trying to compress this natural, “most convenient” time horizon.

What is “Cost Disease?”

William Baumol observed that as our economies grow, our “problem solving machine” operates at different rates in various sectors of the economy and thus productivity growth in one area of the economy can cause the cost of goods/services in other areas to rapidly inflate. He used the example of a string quartet to explain

concepts are very different from the incremental-versus-radical distinction that has characterized many studies of this problem. Second, the pace of technological progress can, and often does, outstrip what markets need. This means that the relevance and competitiveness of different technological approaches can change with respect to different