Economic Theory

We quote famous economic theories, share and analyze actual investment cases in theoretical practice

What Is an L-Shaped Recovery?
What Is an L-Shaped Recovery?

L-shaped recoveries occur following an economic recession characterized by a more-or-less steep decline in the economy, but without a correspondingly steep recovery.

2021-11-29 07:30:37
Four points of principled negotiation
Four points of principled negotiation

Principled negotiation teaches you how to get what you deserve with dignity, allowing you to treat others reasonably without being taken advantage of because of reasonable generosity.

2021-11-23 08:56:41
The Wealth Effect and Febezzle Effects
The Wealth Effect and Febezzle Effects

The Wealth effect and febezzle effects are a couple of important phenomena in finance. As an investor you must understand.

2021-11-23 07:53:45
The Psychology of Human Misjudgment by Charlie Munger
The Psychology of Human Misjudgment by Charlie Munger

As Munger points out, humans are prone to misjudgment situations when they are faced with difficult situations.

2021-11-23 07:06:40
The Market Is Always Wrong
The Market Is Always Wrong

According to the Theory of Reflexivity, investors' expectations are directly contradicted by price movements.

2021-11-22 12:35:11
Introduction to Behavioral Economics - Bounded Rationality and the Savage Paradigm
Introduction to Behavioral Economics - Bounded Rationality and the Savage Paradigm

Bounded rationality focuses on human behavior. It is the assumption that we're all capable of making good choices based on our knowledge.

2021-11-22 12:25:09
Asking the Right Questions - A Guide to Critical Thinking
Asking the Right Questions - A Guide to Critical Thinking

"Asking the Right Questions" is an engaging guide that teaches critical thinking. The authors teach students to recognize fallacies, analyze information, and respond to alternative points of view.

2021-11-22 11:51:40
The Subscription Economy: How It’s Changing The Way People Buy
The Subscription Economy: How It’s Changing The Way People Buy

The Subscription Economy is a phrase, coined by Zuora, describing the new business landscape in which traditional pay-per-product (or service) companies are moving toward subscription-based business models.

2021-11-16 10:47:14
Money, Surpluses and the Diderot Effect
Money, Surpluses and the Diderot Effect

According to the famous French philosopher Denis Diderot, the purchase of things that are easily accessible is the essence of economic life.

2021-11-16 10:15:56
In Fact, Bitcoin Cannot Resist Inflation.
In Fact, Bitcoin Cannot Resist Inflation.

As far as the concept of anti-inflation is concerned, we hope that the purchasing power of currency will maintain or not decline, and that money will not become thinner. From the perspective of fixed depositors, inflation is mostly slow and gradual.

2021-11-15 09:48:00
Crypto presents the best way to counteract surveillance capitalism
Crypto presents the best way to counteract surveillance capitalism

Crypto appears to be hyper-capitalistic, capitalism-plus. It prefers markets over the state to find solutions and protect everyday people. It’s an avenue for the already rich to make almost insultingly large amounts of money. It advances the “neoliberal turn” towards financialization, globalization and commodification of everything.

2021-11-13 06:53:43
The economic black swan
The economic black swan

Black swan events are highly improbable, difficult to predict incidents that end up having drastic consequences.

2021-11-10 11:10:16
What is Circle of Competence?
What is Circle of Competence?

Many people around the world study his techniques, try to learn from him, and emulate his methods. One such method, simple mental model that Buffett uses to avoid problems, and in turn win big is called the Circle of Competence.

2021-11-06 11:37:55
The Difference Between Natural Capitalism and Social Ecology
The Difference Between Natural Capitalism and Social Ecology

Natural capitalism does not deny the importance of profit in society or the ability of a market system to create wealth. It supports the development of various forms of enterprise ranging from small-scale enterprises to large-scale projects.

2021-11-05 07:03:26
Millionaires Do Something Extraordinary to Get Them to the Top 10 List
Millionaires Do Something Extraordinary to Get Them to the Top 10 List

The millionaire class is called the bourgeoisie because they have a source of asset appreciation and passive income. Why is it so difficult for the middle class in this world to become millionaires in the end?

2021-10-29 12:29:37
Poor people's thinking: How does "scarcity" change our psychology?
Poor people's thinking: How does "scarcity" change our psychology?

Why does poverty persist around the world? economist Sendhil Mullainathan and psychologist Eldar Shafir reveal that the hidden side behind all these problems is that they're all about scarcity.

2021-10-28 16:55:43
How The Economic Machine Works
How The Economic Machine Works

The economy works like a simple machine. But many people don't understand it or they don't agree on how it works, and this has led to a lot of needless economic suffering.

2021-10-26 13:24:50