Economists are fond of analogies to describe technical ideas.
Most of those analogies are confusing and/or useless. As I wrote in the introduction of Bankers are people, too:
Economists and journalists writing for lay audiences tend to use metaphors when explaining financial concepts. For example: ‘Cheap credit is like heroin. It’s addictive, and the economy can overdose from it.’ That may sound nice, but what does it even mean?
This is a review of a book written over 50 years ago by a central banker.
Based on that introduction, even most finance geeks will probably think “boring!” or “irrelevant!”. Until you learn it has Nazis, hyperinflation and the Nuremberg trials in it. And those are not even the interesting parts. Continue reading “The Magic of Money”
The New Yorker published a longread (also available in audio) about the increasing power of China. In his article Making China Great Again, Evan Osnos discusses a range of topics, from international relations and trade to artificial intelligence.
Bitcoin has been called a Ponzischeme. Especially now that unwitting speculators are buying the cryptocurrency. They are attracted by the spectacularly rising price of Bitcoin and other cryptocurrencies in 2017.