“The Two Markets” presents an understanding of how the economy works. It provides you with concepts that go beyond standard textbook economics. You will learn about trade balances and imbalances, the “zombie economy,” the zero-interest-rate environment, the global liquidity glut, quantitative easing, and more. Also covered is historical background into e.g. the gold standard and the evolution of central banking. Throughout the presentation, the thesis of the two markets is brought to bear to elucidate otherwise intractable issues. Furthermore, the elucidation of how financial markets work will especially benefit those called to be stewards of disposable funds — i.e., investors.
Follow these pages one by one to get a complete picture of how modern economies function. Most pages include questions and answers as an aid to comprehension.
- Introduction
- The Model of the Circular Flow
- The Role of Banking and Savings
- The Upshot: The Two Markets
- The State
- Two Kinds of Investment
- Flows Between Economies
- The Gold Standard
- Pathology #1: Intervention
- Barriers to Migration
- Pathology #2: Short-Circuiting The Gold Standard
- Central Banks and the Financial Market
- Bretton Woods and Beyond
- Floating Exchange Rates
- Pathology #3: Competitive Pegging
- The Pioneer: Japan