economics
Imported tag from Readwise
economics
but as a class they cannot save anything that is worth saving, above and beyond the amount that is made profitable by the increase of consumer buying.
Michael Pettis • The Great Rebalancing
As previously shown, Japan has a rather balanced trade situation, and has a current account surplus. This presents a natural “floor” for the currency vs other currencies.
On the other hand, the United States has a structural multi-decade trade deficit and current account deficit.
Because the US trade deficit is so large and structural, when we shift
... See moreLyn Alden • Economic Japanification: Not What You Think
Very important factor that instead of trade surplus or deficit .Dollar is dependent on foreigner propensity to increase or decrease treasuries
In this case, however, the liabilities generated by the inflows are not associated with an increase in domestic asset growth, and so foreign obligations rise at an unsustainable pace.
Michael Pettis • The Great Rebalancing
Competition and customer demands in the value network in many ways shape the firms’ cost structure, the firm size required to remain competitive, and the necessary rate of growth. Thus, managerial decisions that make sense for companies outside a value network may make no sense at all for those within it, and vice versa.
Clayton M. Christensen • The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail (Management of Innovation and Change)
A society in which all potential abilities are allowed to develop and function will have a survival advantage in the competition of groups. This competition becomes more severe as the destruction of distance intensifies the confrontation of states.
Will Durant • The Lessons of History
A central reason for policy intervention in this boom-bust process, Minsky emphasized, is the ever-present danger that the contraction will get out of control and spread into a system-wide debt-deflation. In this way, a normal business recession can become instead a deep and long-lasting depression, such as happened in 1929-1933 when debt deflation
... See moreBoston University • Minsky’s Financial Instability Hypothesis and Modern Economics
A basic industry with few players, rational management, barriers to entry, a lack of exit barriers and non-complex rules of engagement is the perfect setting for companies to engage in cooperative behaviour.
Edward Chancellor • Capital Returns
It was inserted partly in the hope of boosting the worker’s weekly income, and partly in the hope that, by discouraging the employer from taking on anyone regularly for more than forty hours a week, it would force him to employ additional workers instead.