Academic freedom
Go into the mountains to find treasure, be sure to find the most important one.
About US currency history
We have the Doctrine of the Mean, which is not suitable for Americans. Originally, Friedman's History of American Currency was left for Americans themselves to do, and there are not many representative works of such research value. However, since we have already written The Theory of Money, there is not much significance in further the History of American Currency. In our opinion, methodology is more important than the theory itself.
The History of American Currency is well documented, and Friedman' research method has many problems. He did not reach the height of a philosopher, and his mathematics is also not up to par. However, his conclusions still have some value, although value is somewhat small—going around the world in a big circle and only picking up a few small stones.
In terms of methodology, we do not advocate the use of the method of back to the source, but rather the direct method. We study the History of American Currency simply to verify our Theory of Money, and as for Friedman's research method, is mostly criticized. Criticism has no value for us, and we can directly state the correct one.
The valuable part of the history of American money is the data for the period 1890-1934. Some of the statements in Friedman' summary are worth studying, but not learning.
The essence of this statement is a Spatiotempora-thinking method, but he does not do it well.
Reading is not something that needs to be too honest. What is correct does not need to be read, and what is wrong does not need to be read Only what is a mixture of correct and wrong has research value. Correct? Think about it, it's that reason. Wrong? To turn around in the wrong will be at a low level.
Knowledge has epoch-making significance, and the fact that we are marking off the epoch in a number of fields is but a preparation for the study of economics. we pluck the goose, there will not be much left for others.
Friedman was no academic star, and that is no great loss to us all.
Monetary History
With the theory of money the history of money becomes valueless.
The process of getting knowledge is more important than the knowledge itself.
Theory of Money
- This book may not be for you to read.
- Don't claim to be an expert if you can' achieve correctness in several fields or aspects. It's impossible.
- Economics is the lively wisdom of human beings and their survival and development.
- Money, it concerns you and me.
- Our interests should be shared. If the world is wrong, you and I may be demons.
- When God comes, darkness also comes. When goes, light also goes.
- After crossing mountains and rivers, thinking the splendor has ended, unexpectedly floating a grain of gold in the soil.
- The enemy has been oneself.
- Learning is not that difficult, but human beings can kill themselves.
The currency was not originally written for ordinary people, but now it needs to be given to others because somone wants it.
An Overview of the History of Currency
1. Chairman Greenspan is not a magician Chairman Greenspan's lack of understanding of price theory prevents him from distinguishing between price adjustments and inflation
3.Before the 1930s, Say and others thought it made sense to say that there is no essential difference between a monetary economy and a barter. "Money acts as a medium only for a moment, and products are always bought and sold by products. The buying and selling are thus completely unified." It was a great to have thought of it in those days.
2.The Swedish Vikosse's theory of natural interest rate in 1898 is wrong, there is no natural interest rate: the monetary interest determines the market interest rate, and the performance of the market interest rate will deviate from the monetary interest rate.
4.Hayek’s “the total quantity of money remains unchanged” ignores the uneven nature of economic development, but his belief that “the influence of money is when it is neutral, and therefore most favorable to the development of the economy.” is important.
But the equilibrium doctrine has limited its own development in economic science. They felt the advantage of keeping the price level in one position, and therefore had the of making it the standard of stability—the quantity of money increasing with the quantity of goods. The variability of prices was complicated, and therefore the rate of interest became a matter of or low (really of regulating the quantity of money by varying the rate of deposit reserve.) But this ignores the influence of changes of interest on the market. They could not in their day, reconcile the two, because it requires the equation of exchange. Was it quantity or rate of interest that fundamentally influenced prices?
They felt that the money was doing something helpful to the economy in a given state of affairs, and so they had the idea of a price level as a for the money - a conception of equality between increments of money and increments of goods. Changes in the price level were made complicated by the problem of the rate of interest (which was reality the problem of regulating the quantity of money by changes in the rate of deposit reserve). But this neglects the influence of changes of interest on the market. They could not in their day, reconcile the two, because it requires an equation of exchange. Was it quantity or interest that was of fundamental importance in affecting prices?
Money is the medium of exchange only for a moment, and products are always purchased with products, and buying and selling are completely unified. Why can products be with products? This is where the theory of labor value comes in, and the theory of labor value seems to explain this situation, but can the theory of labor value trace the past Thus, there is the vexing terminology of "nominal, actual." At the same time, there is the theory of cost, which opposes the theory of labor. Cost is the process, and there is no difference between it and the theory of labor value. However, there is a demarcation of asset ownership, and there is aarcation of cost-benefit transfer. How is benefit transferred? Interest. How is an item priced?
The equation of item pricing is the author's divine idea, without this foundation, the predecessors could not have penetrated the entire field of economics. It can be said that the equation of item pricing can not be induced from the data, it is just impossible under the existing data processing methods - averaging arbitrarily. Theory is the ultimate, reality noise.
5.Fisher
5.1 Fisher Equation (MV = PT, P = MV / T) Fisher’s 1930 Theory of Interest is a unique work of dialectics, but it is only fit to be read for the first 100 pages, and it is a downhill journey to read.
The problem is the knowledge of the facts, The Theory of Interest does not know the details of the money, the things of the trading part.
MV=PT is stock equation (the stock equation is a component of the equation of things for price), and it can also be a trading equation, M includes M0 and loans from demand and deposits. There is no essential difference between the Fisher equation and the Gmutation trading equation, but in market trading, M is the price of goods, V is the stock turnover rate PT is the sales revenue.
The monetary system is divided into a price system and a banking system, and the price system is divided into an asset system and a cost system. asset system is divided into a capital system and a credit system by interest rates, and the banking system is divided into the central bank and commercial banks. The central bank is the unit of the primitive money, and commercial banks are the operating units of the money, and commercial banks will produce more money when they operate the money.
Financial assets belong to credit system and the capital system. The asset attribute of a person is difficult to determine, and a person can also exceed the capital, which is where Keynesianism can be. Money is also divided into cost, credit, and capital. Assets are divided into interest-free assets and interest-bearing assets.
It is problematic to understand price theory price as the anchor, and price changes are complex. Time and place are different, and the structure and content of the contract may be different. The reasons and changes in the direction the movement of the various categories of things are different. It is impossible to count the price of things as a whole, and there are a large number of things that have not been in the market but are playing a role. Why can't the interest rate be extracted from this?
Interest rates don't have as much stuff as prices. Fisher believes that is the impatience of time, in fact, the capital interest rate is the market contract formed by the capital demand for replacement, and other interest rates should be evolved from the interest rate.
P=MV/T is the basis of exchange rate theory, but people ignore this equation.
nterest rates are divided into cost interest rates, capital interest rates and sales interest rates. The deposit and loan interest rates belong to the cost interest rates, and the capital interest rates are calculated after the capital is replaced. The sales interest rate is of the same nature as the capital interest rate, and the relationship is simple.
5.2. Fisher Effect
Assuming there are always such or such problems, the Fisher effect ignores the possibility that people can make more money. is due to the limitations of the research method, don't assume things that don't exist? Things that exist can be categorized.
Price increases are divided into price adjustments inflation, and it is difficult to distinguish the two clearly. There is a problem of time reset for items and currency values, and it is difficult to clearly understand the specific relationship between original value and the present value, because the process of change is too complex. The inflation rate and the currency interest rate are both cost interest rates, but they are not in same system (the currency interest rate is generated by the central bank system, and the inflation rate is at the bank system link.), and it is not a simple addition and relationship. Currency can have different nature interest rates under different conditions.
When prices rise, we only need to focus on the underlying poor people, and other groups have sufficient selfhelp capabilities. Currency has too many choices, and it is wrong to raise interest rates because of price increases.
The relationship between nominal and real is not clear, we only to focus on the present. The nationalization of pensions and medical insurance (why deliberately not socialized?) has solved the problem that saving money is difficult to cope with a future pension and medical insurance due to currency value adjustments.
5..3 Summary
Fisher has a strong logic, but he is not yet in place in the methodology of research, and it is difficult to, analogize, and metaphorize, and it is difficult for the paradigm of assumptions to be the same as reality. That is to say, the "Theory of Interest" not be read, but it is also important training material for beginners.
There are loopholes in logic, and sometimes the wrong major premise can still lead to the correct conclusion which will make the beginner's heart lucky. This is not wrong, but the probability of getting the correct one on this road is very low. Research is not easy, and small mistake will lead to a pile of mistakes. Fisher can still do it. He knows that he needs to undergo a lot of thinking training, but he just can't get of it.
Correct information is very important, which requires a lot of training. It is not enough to learn about the methodology of economic research. The kung fu is. You can research history, do elementary school, and play games. Do what is easy. History does not need to be remembered. It needs to be recreated. Every detail be done to the extreme correctness.
Despite this, it is indeed a genius for Fisher to get this inventory equation.
6.1Fridman's Equation of Money
Searching for Friedman's money demand function, I encountered a-choice question, with questions about what Friedman's money demand function is and what each term refers to. This is going to confuse people.
Md/P=fY,w,Rm,Rb,Re,gP,u), where Md represents the nominal money demand, P represents the price level, Md/P the real money demand, Y represents the nominal permanent income, w represents the proportion of non-human wealth to total wealth, Rm represents the expected nominal rate of return on, Rb represents the expected rate of return on bonds, Re represents the expected rate of return on stocks, gP represents the expected rate of change in the price level (ie., the expected rate of return on real assets), and u represents other factors affecting money demand. The relationship between w, u, and Md is uncertain.
1) Md is the price, not the nominal money demand.
(2) What is nominal permanent income? Expected average long-term income, how long is long-? Labor is not divided into physical and mental labor, which would reduce wisdom. "The greater the proportion of human wealth in a person's total wealth, the greater the demand money, and the greater the proportion of non-human wealth, the relatively smaller the demand for money. Therefore, the proportion of non-human wealth in a person's total is negatively correlated with the demand for money." It must be stated that what kind of money demand is greater? In the entire monetary system, any wealth that needs to correspond to will not be less, but only stored in different places.
(3) Rm, Rb, Re, and gP are collectively referred to as opportunity cost variables in's money demand function. However, gP represents the expected rate of change in the price level < the expected rate of return on goods. How is the expected rate of return? Without expectations, there are only contracts.
Money and goods are opportunity costs, and money can naturally earn interest.
The monetary interest rate evolved from the capital interest rate, the interest rates of stocks and securities are affected by the monetary interest rate and vary accordingly, "If other conditions remain unchanged, the higher the rate of price change, the smaller quantity of money demanded. Because under the condition of rising price change rate, people will give up money to buy goods, thus reducing the demand for money."
If other conditions unchanged, can the price change? Under the condition that the price change rate rises, people will definitely give up money to buy goods? What about elasticity?
(4) must be conditional. Futures preferences for price changes, Rb, Re are also. There are always people who think they can predict price changes.
5) What is? The terms on the right side of the equation have different properties and there are problems of variability, asynchrony, etc. f is a relevant variable. Friedman a good discovery in "A Monetary History of the United States", but he was unable to transform it into an important monetary theory or economic theory. He was just patching the results of his predecessors.
6.2 Friedman's three-effect doctrine
The increase in the money supply will produce an income effect, a price level effect, and an inflation expectation effect, which must also be conditional.
The knowledge is right in front of us, but Friedman just can't see it.
The liquidity preference must be conditional, increase in the money supply is independent of the monetary interest rate, and the monetary interest rate can be controlled by the central bank by controlling the deposit reserve rate. The process of increasing money supply will involve price adjustments, and whether it will lead to an increase in supply depends on the extent to which the supplier has a grasp of the market.
All goods have rates, and money needs to be issued, but how this issuance is put into practice? This requires thinking about the principle of economic growth, ultimately falling on the growth of people and further on the key point of Keynesian doctrine - the theory of group survival and development, the issue of human self-discipline.
6.3 summary
Friedman's trip to Chile was great, and the way it was handled was appropriate. It's always right to let the of Chile live a good life, and those who oppose him need to consider the issue of his character. This needs to be expanded upon, is the current US economic sanctions against something It violates the principle that problems should not be expanded.
It is generally believed that his scholarship can be summed up in these two sentences: "One is the economic liberalism that the free market economy, and the other is the Keynesianism that advocates government intervention. He believes that the money supply should be determined by the market, not controlled by the, while he also believes that the government should regulate the economy through fiscal policy.".
The principle of market freedom is unchangeable, and the theory of government intervention the market is a misunderstanding of Keynesianism. The key point of Keynes's doctrine is to expand people's rights to survival and development, compared with the principle, this is a macroeconomic system, and the theoretical basis behind this doctrine is the principle of economic growth, the principle of currency issuance, and the theory of group survival development. In the macroeconomic system, there is no problem of employment (do college students need to worry about their employment?), only whether the state function is in place.
Friedman was a mess in price theory and took the road of equilibrium theory. Prices are controlled by sellers to control the capital yield in order to control new entrants
8.Cambridge Equation (Pigou, 1917)
In 1917, Pigou, a Cambridge professor, proposed the equation M = kPy, where M/k = MV. The symbol k denotes the ratio of the cash held by people to the nominal income (Py) This is an attempt to think about money as a whole, with GDP becoming the nominal income, and the problem system occurring at the interface of commercial banks and the market. However, is the yield of a comprehensive asset, including money and other assets, and self-produced and self-used parts of goods are not included.
"The velocity of circulation of depends on the time and amount which people hold money, and the time and amount which people hold money depend on what proportion of their property and income is in the form of money. There is a question of correlation here, with the monetary form of deposits being held in reserve at the central bank. It is problematic to store money in commercial banks. Marshall's partial law, inventory in the market is goods, and the essence of nominal income is sales. There is ambiguity among people and among people. The purpose of the money that people is also controversial, and only the part involved in operation is related to nominal income. It cannot be said that Marshall's thinking is wrong, but it is wrong to think that Pigou equation is the correct mathematical expression of Marshall's quantity theory of money, and it is also wrong to think that the Pigou equation is wrong. The way of learning so strange.
1/k = Py/M? M is inventory (reserves), 1/k is the turnover rate
9.Triffin Dilemma
The dollar's decoupling from gold does not prove Triffin's rate of exchange is correct The mistake of the dollar's coupling with gold is the failure to realize that money is
xchange rates are market affairs and do not require government. When there is a balance of payments, there is a problem of controlling the liquidity of capital, but the flow of capital is the principle of market freedom. Within a, there are also exchange rate issues in different regions, and the flow of the amount of money levels the price difference. The form of floating exchange rate can also be essentially a exchange rate, and the advantage of floating exchange rate is that it can act on its own.
Principles are necessary conditions, rules are sufficient conditions, and principles are superior to rules.
Territorial sovereignty, mutual non-aggress, mutual non-interference in each other's internal affairs, equality and mutual benefit, and peaceful coexistence are basic principles, but when there are disputes over territory, when affairs involve regional stability, when it is impossible to coexist peacefully, when it is not possible to be equal and mutually beneficial, it is necessary to have some coordinating rules, and some coordinating rules are necessary conditions for achieving the basic principles of peaceful coexistence, they become principles.
That is to say, the liquidity of capital should not be an issue, the impossible trinity of Mundell does not hold.
10.Liquidity Trap
The liquidity trap is Keynes' deduction, not an assumption. "The nominal interest rate is close to or has reached zero, the elasticity of money liquidity demand becomes infinitely large, the private sector regards money and bonds as perfect substitutes, and any increase in the money supply will be stored At this time, injecting base money into the economy is ineffective, and
also a good, but the productivity of money far exceeds that of ordinary goods, which makes necessary to limit the issuance of money. The problem with the gold peg is the instability and timeliness of gold production.
Keynes used a liquidity demand elasticity, which is nothing more than a play on words, isn't it just that the enthusiasm for investment will decrease very seriously.
nominal interest rate is the current interest rate. Keynes' judgment is correct, but the problem is how to deduce the elasticity of money liquidity demand when the interest rate is , why it becomes infinitely large? What about a little further away from 0? A little further? Reverse 100? In this way, it will be found there is a neutral point or a neutral area for the money interest rate. The next step is to find a way to find this neutral point or neutral area of the money interest rate Keynes is really stupid. Those countries that have adopted negative interest rates...
11.economic cycle
The traditional theory of economic cycle is the same as the market cycle, which is incorrect. Market cycle: the phenomenon of cycl change caused by the change of supply and demand leading to price change, and there is a certain degree of information disconnection, which in turn leads to cyclical change. Market cycles the ability to recover automatically. It is incorrect to describe economic cycles as periods of prosperity, recession, depression, and recovery. This kind of understanding is extremely harmful, ① it the root cause of artificial economic cycles. ② It has a fluke mentality of automatic recovery in a bad economy.
M2 growth will put pressure on interest rates under the condition social demand cannot grow. All goods have interest, and money needs to be issued whether the economy grows or not, which will lead to price increases under the condition that supply cannot grow This is the change in the value of money caused by the quantity of money, which is also cyclical and synchronous with the
cycle caused by M2. What actually happens involves changes in monetary interest rates, policies, etc., which can lead to complex economic cycles. When prices are rising, we need to pay more attention to the lives of the people at the bottom of the wealth distribution triangle, and the growth of the bottom people needs assistance. Keynes' greatness lies in accelerating people's growth, increasing survival security, economic growth, and also reducing the harm of economic cycles.
even the most accommodative monetary policy cannot change the market interest rate. Monetary policy is ineffective."
Since 2009, the currency has grown rapidly, and computer technology, especially information technology, has brought changes to the world, causing wealth to continue to grow, but the understanding of monetary and wealth theory limits the energy of the information age. This growth is not yet dazzling enough and the energy of knowledge in this era has not erupted strongly enough to divide the era. It can only be considered as the beginning of an information economic cycle. Smart technology, AI and other technologies are also just the continuation of the early stage of information economy. What is important is that human beings can overcome themselves and divide the past thoughts.
In Friedman' "A Monetary History of the United States", he mistook the economic fluctuations caused by artificial monetary operations for economic cycles, and the US monetary authorities also operated arbitrarily because believed in the wrong theory of economic cycles.
12.Quantitative easing
Quantitative easing is different from adjusting interest rates. The literal meaning of quantitative easing is to continuously more currency, but the interest rate can be high or low when increasing the money supply. Implementing quantitative easing requires conditions and limits. A limit occurred in the US monetary during President Trump's term in 2020/5, but the problem was that the interest rate was low at that time.
Friedman'sA Monetary History of the United States" (1867-1960) has used the method of quantitative easing to deal with financial crises many times, but that at a high interest rate. There is a problem of inconsistency between description and reality. "Quantitative easing policy is usually used when traditional monetary policy tools (such as interest) are not effective, for example, in cases of deflation or economic recession.". It also includes deflation and economic recession with low interest rates. This description is very. In the period when language is poor, axiology plays an important role in communication. When language becomes developed, the actual situation may be different from what is described when the language is not perfect.
Over a hundred years, the US dollar has experienced being linked to gold, decoupling from gold, re-linking to gold, and re-decpling from gold. The reason for linking to gold was not knowing how to issue currency, and the reason for decoupling from gold was that gold production could not be used as a to limit economic development. The multiple financial crises in "A Monetary History of the United States" were caused by the sudden increase in gold and the central bank's urgent and increase in interest rates, followed by quantitative easing. The value of this book is greatly reduced because it does not take interest rates as the main line, but is too deliberate about taking as the anchor, which is the drawback of language thinking. The information of history occurs under the conditions of historical establishment. The characteristics of gold production determine that financial crises have the of automatic recovery. However, this also leads to monetary history being human history, and taking gold as the anchor restricts economic development. That is to say, the good days of are also recent decades.
his chapter is to explain Mr. Ba Shusong's question "The euro has won the dollar, but Europe has lost the
economy." the interest rate is high,quantitative easing is beneficial to economic development, but when the interest rate is low, economic development is limited. During President Obama's term, the euros interest rate was lower than the dollar, and the dollar had a low interest rate. During President Trump's term, the dollar interest rate was adjusted higher, and the euro rate was still very low. The US economy has pulled away from Europe during two periods. The euro's victory over the dollar occurred when the dollar had a high interest rate, the euro's interest rate was lower than the dollar.
13.Marginal analysis
Marginal is differential, differential is very small, the question is how to determine the that can no longer be smaller? Does advanced mathematics solve the problem of defining the domain in an imprecise way?
Economics is a flexible science, you can' buy something for 105 yuan with 100 yuan? It is about conditions, don't bargain with the waiter. Selling things, you some here and gain more there. Buying things without bargaining loses some, but focusing on your favorite field can gain more. How can outsiders understand other people's calculations? Flex is the boss's business.
Mr. Yang Xiaokai came up with a super-marginal analysis, super-marginal is the observation of tiny changes tiny changes, which is an issue of indirect relationship.
In one chapter of Keynes's "The General Theory of Employment, Interest, and Money", "The Marg of Capital" "When involuntary unemployment exists in a society, the marginal disutility of labor must be less than the utility of the marginal product, and the degree of insufficiency may be great. If a person is in a state of long-term unemployment, then his labor has positive utility rather than negative utility. That is to say, "wasteful"
expenditure on debt can enable a society to achieve prosperity.".
When there is involuntary unemployment in a society, demand is seriously insufficient, and lay make others better without being related to the prosperity of society.
The marginal is not diminishing, diminishing is an illusion. Lacking a bite is imperfect, having an extra bite can harmful. The efficiency of production cooperation is composed of a fixed structure, and the marginal cannot affect this structure. Keynes used opportunity cost to discuss interest, but his object of is blurred. Thus, he moved towards preference rather than choice. Choice is conditional, preference is also conditional, but the language of preference is not so appropriate.
Capital pays to connection, and more opportunities for external connection mean more opportunities to make money or reduce losses.
Bellman, an American, put forward the principle of optimization in 191: "The optimal strategy of a process has such a property that, regardless of its initial state and initial decision, its subsequent decisions, for the process whose initial state is the formed by the first decision, must constitute an optimal strategy.".
At Keynes's time, there was no principle of optimization, but there was a Markov process, meant that.
Keynes's problem is obvious, thinking about overall optimization from local optimization, he violated the principle of optimization and produced an illusion, and he even ignored the of debt. Local optimization is layoffs, and overall optimization requires analysis of the reasons for economic deterioration.
The rate of return on capital is a contract, Keynes assumed a, and there was a saying of expected return, which in turn led to the saying of price equilibrium.
14.No matter how hard you try on the wrong foundation or direction, it will be futile.
Exchange are simple, the result of market activities. The central bank's balance of payments behavior is the result of government intervention in the market and control of capital flows. Japan and China large amounts of foreign exchange is a waste of wealth, which reduces the circulation of wealth. How can the matter of receiving money become the Triffin dilemma? The system boundary is.
The lack of understanding of the theory of interest rates leads to the difficulty of correctly understanding the theory of price and the theory of money. However, no one has ever considered the capital interest rate is a market contract.
On August 15, 1971, the US dollar decoupled from gold, which made it possible for the to be issued properly, but later financial crises followed one after another. The 2008 financial crisis was man-made and ignored the fact that the economy had already gone. This is a problem of quantity economics, which does not fully consider the limitations of data information and the complexity of reality, only recites books, and lacks the training of conceptual.
very business school in the world has game theory, and game theory deprives economics of its innovative ability. Just dig out what is included in things. Economics education lacks training of sensitivity to details - history teaching only lets students recite books. The music teacher in the general education should be someone who does not understand music. Listening to music can a learning method, mastering the coordination problem of details and the system. Philosophy is separated independently, and there is no professional foundation to study the reality materials. System theory and complex
Nowadays, financial studies often require mathematics, what kind of profound mathematics does economics need? What is needed is theor of mathematical thinking, and the key point of mathematics is to grasp the concept rigorously. Marginal analysis makes economics lose its flexible wisdom, and the flexible change of transaction cost the right of the owner to compete with the hand. The change of time and space is the key point of the complex system, and it is also the source of wisdom. is the proportion of savings deposits in the sources of funds of financial institutions not taken as the reciprocal? The facts are right in front of us but we can't see them.Hawking's "A Brief History of Time" is confused by multi-dimensional and also confuses himself. People who do not know how to learn are the manifestation of not the theory of coordinates, and in fact, they are confused about different system boundaries. The confusion of system boundaries is because the coordinate origin is not clear.
The teachers of School of Economics and Management who have game theory do not know how to arrange the courses. The correct learning method comes from the extreme pursuit of knowledge, and then the correct education and management methods.
Different learning methods lead to huge differences in results. Now some teachers let students take the place of class, which is a great opportunity for students to improve. the teacher's learning method is different from the student's learning method. The teacher will seriously pursue a thorough understanding of every detail, not just remember the teaching content. This important for students to do research later.
The national guarantee of pensions and medical care is the basis of modern currency, which is something that mathematical economics and empirical economics can never think.
15.summary
It is as great to adhere to the principle of market freedom as to Keynes, and the who adhered to the principle of market freedom have made great efforts for this, and Say was persecuted for this. The great gods are also like that, and there are also ones who are almost forgotten.
It is not easy to understand a principle, and the time it takes varies from person to person. Although it is difficult to get the right answer the wrong direction, people are not stupid, and there are low-level rules that can be used. When we think we are right, someone else thinks we are fools. The of dealing with fools is very simple, flattery and high hats, but it will also lead to the loss of other things. Scientific research thinking requires too high a degree of concentration.
We are basically moving forward in a muddle, still thinking we are right. Learning the essence is an accident, and it is very common to only learn the dregs Only by making continuous mistakes can we understand, but the low-level rules can keep people fooled forever and never understand.
Consumption is also an investment, which connects the entire system, and all goods have interest rates. Old-age insurance and medical insurance have solved the human confusion caused by the continuous adjustment of the currency value, and there is no need think about the original value of the currency. Man can be super-capital, which points out the direction for the government to exercise its national functions. The mistake of the economic cycle makes some national governments take chances in economic development, and the next round of information technology will widen the gap between the rich and the poor among countries if it can bring about change in thinking. China may have a chance, and India needs to work harder.
Economics is like this, a detail after another detail, and any detail that is can make the whole theoretical system confusing.
Information technology has brought unprecedented changes, but this is only the beginning, and it has not yet caused a change in the way of thinking The key to this round of wealth explosion is the change in education and scientific research management - let students learn for themselves, and those who pay must have the ability to evaluate scientific research.
Completely eliminate the fluke of quantitative easing: Quantitative easing that stabilizes prices will lead to less money being issued than in the case of a neutral money interest rate and the value of the currency will not be as good as the latter. This is the effect of different interest rates.
In terms of understanding money, people are muddleheaded move forward bit by bit, with occasional bright spots, and also like Keynes, who inexplicably won the prize. This is determined by the times. Beginners are like this. To reach a sudden understanding, it takes a considerable amount of correct accumulation, which may have nothing to do with these accumulations.
Regardless of whether the thinking is correct wrong, it should play a positive role for later generations. When the system controls people's thinking direction, these accumulations instead become stumbling blocks for people to move forward.The key point of research lies in the problem itself, and the choice of the system boundary will affect people's research. Money cannot be independent of the entire economic system, makes the content of money theory research very complex. The defects in methodology have seriously limited people's progress in monetary theory
Exploring U.S. Currency
Due to historical reasons, the US dollar has become the world currency, but it can maintain it to now and it depends on the monetary management of the Federal Reserve better than that of other countries. That is to say, other countries played small clever but didn't get benefits.
During Biden's presidency, there has been monetary inflation and economic contraction. Both Chair Powell and President Biden bear responsibility for this situation.
Now, Powell is still there, and that is very bad for President Trump's domestic revolution in America. What President Trump worked very hard fo will be greatly weakened by Powell.
Since the founding of the Federal Reserve, there has not been a very good chairman, and Chair Yellen's handling of the currency is still acceptable. Chairman Powell is a professional at ousting bosses. Breslau does not seem to have studied the History of American Currency.
★★★★★