The hottest Economic Theory Substack posts right now

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The Physiocratic Platform: Banking

Contemplations on the Tree of Woe • 882 implied HN points • 13 Sep 23
💰 Finance Banking Economic Theory
  1. The Physiocratic Platform focuses on reforming the banking system by replacing the Federal Reserve and fractional-reserve banking.
  2. The Chicago Plan advocates for full-reserve banking and government-issued equity money to avoid debt and inflation.
  3. Implementing the Chicago Plan can regulate credit cycles, prevent bank runs, reduce government debt, and boost long-term economic output.

The Sword of Damocles

The Dollar Endgame • 319 implied HN points • 30 Aug 23
💰 Finance Global Markets Economic Theory Central Banks Monetary Policy
  1. The global financial system heavily depends on the US dollar, causing a constant demand for dollars worldwide.
  2. Triffin's Dilemma and the Dollar Milkshake Theory highlight the systemic risks and implications of the US dollar's dominance.
  3. The Fed plays a critical role in stabilizing the global financial system by supplying dollars; any missteps could lead to widespread financial instability.

The Case for Fiat

The Dollar Endgame • 159 implied HN points • 23 Sep 23
💰 Finance Monetary Systems Economic Theory Financial Literacy Cryptocurrency Wealth Inequality
  1. The fiat system's survival doesn't depend on morality, as history shows evil systems have persisted. People may feel powerless against organized evil but may also become complicit in it.
  2. The fiat system, flawed as it is, has worked to lift many out of poverty and fuel innovation. Everyday citizens often lack the financial and political knowledge to make informed decisions about the system.
  3. Bitcoin's adoption faces hurdles as the majority may not share the beliefs of its proponents. Transitioning to a new system might lead to short-term pain and disparities, impacting various demographics differently.

There Are Three Ways to Get Rid of Inflation. One Is "Impossible" and One Will Destroy the Country.

Surviving Tomorrow • 314 implied HN points • 18 May 23
💰 Finance Inflation Taxation Wealth Distribution Monetary Policy Economic Theory
  1. Inflation impacts different groups differently: savers punished, poor robbed, debtors rewarded.
  2. Eradicating inflation can be done by destroying the working class, taxing the rich, or creating anti-inflation money.
  3. Anti-inflation money involves investing in new assets, taxing back excessive money, and destroying it for common well-being.
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Assessing altruism

Model Thinking • 19 implied HN points • 09 Jul 23
🔬 Science Behavioral Economics Altruism Child development Economic Theory
  1. Intergenerational altruism in the Barro-Becker model may need to be as low as 0.09 for a stable solution, which seems paradoxical considering the proportion of a parent's and child's consumption.
  2. Potential explanations for this paradox include scale economies in household production, children being viewed as 'utility monsters,' and parents seeing children as a prestige good.
  3. The discrepancy in altruism values between parents and consequences may imply that individuals are not consequentialists and may prioritize existing utility over potential future utility.

Economic Activity in Context

In My Tribe • 1 HN point • 05 Mar 24
💼 Business Economic Theory Human behavior Market Dynamics Economic History
  1. Human interdependence is a key aspect of economic activity, involving psychology, sociology, and anthropology in addition to traditional economic theory.
  2. Specialization and trade, unique to humans, play a vital role in economic activity evolution, with increasing complexity observed over time.
  3. In human interactions, balancing individual, group, and societal level incentives presents challenges, with markets often being efficient at the societal level.

The Entrepreneurship/Inequality Myth

Joshua Gans' Newsletter • 0 implied HN points • 03 Jan 16
💼 Business Entrepreneurship Inequality Startups Economic Theory Philanthropy
  1. The common belief that entrepreneurship and inequality are inherently linked is likely a myth. There is no strong theoretical or moral basis to support this link, and empirical evidence is inconclusive.
  2. Entrepreneurship, if done right, can actually reduce inequality. The financial rewards gained by entrepreneurs can come from reallocating resources in ways that decrease inequality, not increase it.
  3. Some successful entrepreneurs, like Mark Zuckerberg and Priscilla Chan, choose to give away their wealth, indicating that not all entrepreneurs prioritize personal consumption over reducing inequality. This challenges the idea that a larger slice of the economic pie is necessary for entrepreneurship.