economics

At the quarterly to annual scale however, the factors to price moves become more obvious.

The key factors are:

• GDP growth differentials;

• Interest rate differentials; and

• Capital flows

In conventional discounted cash flow valuation models, we use higher discount rates on riskier cash flows and lower discount rates on safer cash flows.

When the Fed’s balance sheet rose sharply from 2008-2014 via QE, it didn’t necessarily translate into broad money supply going up because there was no direct mechanism to turn base money into broad money. However, in 2020, the combination of QE and large fiscal deficits (literally sending checks to people) did cause the broad money supply to go up

Additional factors facilitating the spread of disease are the movements of armies and the expansion of international trade. The latter factor should be qualified by noting that international trade expands in the precrisis period (stagflation phase) and then gradually declines after the society has descended into anarchy. Thus, the rise of

Building a skyscraper took all of the tools required to build a house, and many more besides: structural steel, safety elevators, fire-proofing, raft foundations, electricity, lightbulbs, plumbing, telephones, and ventilation systems. Each of those had its own history of technological development, and all came together to make skyscrapers possible.

He is merely exchanging a more liquid form of asset or credit for a less liquid form.

Foreigners, it must be remembered, do not fund fiscal deficits. They fund current account deficits, and they do so automatically.

Electricity becoming a “willing servant”—introducing washing machines, vacuum cleaners, and refrigerators—freed up hours of household labor in a way that let female workforce participation rise.