When A Dollar Isn't a DollarYou’re reading Economic Forces, a free weekly newsletter on economics, especially price theory, without the politics. You can support our newsletter by signing up here: One thing that banks do is allow you to take physical currency and deposit it into an account you have with…
Institutions Have Knowledge, Not PeopleCharlie Plott gave us the Fundamental Equation for an economic explanation. The simplified version is Preferences + Beliefs + Institutions = Outcomes. To explain differences on the right-hand side, you need differences on the left-hand side. Given our understanding of decision…
