economics
Imported tag from Readwise
economics
Rather than opting for Friedman’s helicopter money (Friedman 1969), which is focused at consumers and whose benefit can be reduced through leakages to imports and saving(s) transferred into the financial economy, we opt for a ‘smart helicopter money’ concept to target the supply side of the real economy, which existing mechanisms fail to reach. To re
... See moreRichard Simmons, Paolo Dini, Nigel Culkin • Crisis and the Role of Money in the Real and Financial EconomiesAn Innovative Approach to Monetary Stimulus
This is what India did with ECLGS scheme
The orange line could occur if a lot of private European and Japanese investors buy un-hedged Treasuries in a risk-off move, which would delay the need for increased U.S. debt monetization by the Federal Reserve. Either way, I expect down for the dollar in the multi-year long run, but the path to get there has these two main outcomes, in my view.
Th
... See moreLyn Alden • The Global Dollar Short Squeeze
If many private investors from Europe and Japan decide to buy U.S. government bonds without any protection against losses, it could slow down the need for the Federal Reserve to create more money to cover U.S. debt. In the long run, I believe the value of the dollar will go down, but there are two main ways this could happen.
To understand when and if the dollar might suddenly increase in value, we should pay attention to the Federal Reserve's financial situation and how much these foreign investors are buying. If they buy a lot of U.S. bonds, it could delay the Fed needing to create more money to handle the growing U.S. government debt. However, if not enough people want to buy these bonds to cover more than $1 trillion in yearly U.S. government spending, the Fed will have to step in and create a lot of money to fill that gap, which could add a lot of dollars into the economy for years to come.
Imagine all the revenue of the business sector coming in through one pipe and all its expenses running out through another (figure 1). The “profit meter,” which measures the volume flowing through it much like a water meter, records the net effect of these flows on business net worth, represented by the “net worth tank.” All expenses reduce the net
... See morelevyforecast.com • 2008_Profits_040208
Metaphor good example
Second, Trump is threatening to put tariffs on U.S. allies like Canada and Mexico. This will deprive American manufacturers of the cheap parts and components they need to build things cheaply, thus making them less competitive against their Chinese rivals. It will also provoke retaliation from allies, limiting the markets available to American manu
... See moreNoah Smith • Manufacturing Is a War Now
Item #2: Inefficient Healthcare Spending
The United States government subsidizes the raw ingredients that go into inexpensive carbohydrate-based ultra-processed foods. For example, the high-fructose corn syrup industry gets more federal funds (via subsidies for types of corn that are bred for that purpose and inedible for corn-on-the-cob consumpti
... See moreLyn Alden • September 2024 Newsletter: Why Nothing Stops This Fiscal Train
solution that may no longer work. Their skill was in avoiding the same old patterns. In the wicked world, with ill-defined challenges and few rigid rules, range can be a life hack.
(Journalist) David Epstein • Range: How Generalists Triumph in a Specialized World
terminal value computation is not what growth rate you use in the valuation, but what excess returns accompany that growth rate.
Aswath Damodaran • The Little Book of Valuation
While economists were looking at inflation in medical costs and college tuition, American companies were being bled by deflation in manufactured goods.