John S. McCallum

They say the four words “This time is different” are the four most dangerous words in finance because usually this time is not different. History does often repeat itself.

Derivative Wisdom

It took a revolution in the field of finance to produce the theories and techniques that make possible today’s sophisticated markets. This revolution started in the 1950s inside the heads of a few dozen economists, mathematicians, statisticians, and physicists working at universities and consulting firms. Modern quantitative finance came of age between the 1970s and 1990s, but is only reaching full maturity now. With the … [ Read more ]

Competitive markets and The Rule of Three

The “Big Three” no longer have the automobile market to themselves, but almost every market, including the one for cars, is ruled by three dominant firms. That reality does not prevent other firms from being successful. However, all firms, regardless of their market share, must still understand The Rule of Three and how it will affect their strategy and attempt to operate efficiently.

Andrea Gabor, Deirdre McCloskey

The mathematical methods of the [economics] profession are actually metaphors that serve as both a tool of persuasion and a powerful barrier to entry against speakers of plain English. The metaphors are not neutral, as has long been assumed; some, such as the “invisible hand,” Adam Smith’s mechanism by which an individual acting in his or her own interest is also helping the community, are … [ Read more ]

City Planet

Get ready for cosmopolitan slums with thriving markets, aging residents, and the most creative economies in history.

The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger

A book about the history of the shipping container? At first, one has to wonder why. (An eventuality not lost on the author, who muses “What is it about the container that is so important? Surely not the thing itself…the standard container has all the romance of a tin can.”) The catch, though, is that Levinson, an economist, “treats containerization not as shipping news, but … [ Read more ]

World Bank Privatization Database

This site provides information on more than 9,000 privatization transactions in developing countries from 1988 to 2003. Search transactions by country, region or sector for a particular time period or for the entire period covered in the database.

Stever Robbins

With regard to national security, pollution, energy policy, education, global warming, and other commons issues, it’s hard to see how individual self-interest can add up to the community-wide base we need to remain a competitive nation in the twenty-first century.

Baruch Lev

One thing differentiates intellectual capital or knowledge assets from physical and financial assets, and that’s what economists call “rivalry” and “non-rivalry” assets. Physical assets are rival assets. Different users rival for the use of an asset. This asset cannot be used elsewhere at the same time. …Physical, human and financial assets are rival, or scarce, assets, where the scarcity is reflected by the cost of … [ Read more ]

Ahead of the Curve: A Commonsense Guide to Forecasting Business and Market Cycles

Economic and stock-market cycles affect companies in every industry. Unfortunately, a confusing array of anecdotal and conflicting indicators often renders it impossible for managers and investors to see where the economy is heading in time to take corrective action.

Now, a thirty-five-year Wall Street veteran unveils a new forecasting method that will help managers and investors understand and predict the economic cycles that control their businesses … [ Read more ]

The Globalization Debates

Most people agree that globalization and the introduction of a market economy have the power to do enormous good. But for many in the developing world, they have not brought the promised economic benefits – and in many cases, they have made things much worse. Three key players in the globalization debates – 2001 Nobel Laureate in Economic Sciences Joseph Stiglitz, renowned philanthropist and president … [ Read more ]

The Intelligent Investor: The Definitive Book On Value Investing

Whether you’re buying whole companies or just a few shares, there’s no better investing how-to book than this. But don’t take my word for it; the book is famously revered by no less an intelligent investor than Warren Buffett. Graham’s advice is simple — any stock you buy should be worth more than it costs — and he provides a method for determining a stock’s … [ Read more ]

The Demographic Deficit: How Aging Will Reduce Global Wealth

The world’s wealthiest countries will need to save more and increase their capital efficiency or they risk lowering their standard of living.

The Economic Impact of an Aging Europe

The aging of European populations will threaten living standards and prosperity.

The Economic Impact of an Aging Japan

The rapid aging of the Japanese population will dramatically reduce savings and wealth-and cut off an important supply of capital to the world.

John Maynard Keynes

The modern capitalist is a fair-weather sailor. As soon as a storm rises, he abandons the duties of navigation and even sinks the boats which might carry him to safety by his haste to push his neighbor off and himself in.

John Kenneth Galbraith

It has always been imagined, especially by conservatives, that to associate all, or a large part, of economic activity with the state is to endanger freedom…

The greater danger is in the subordination of belief to the needs of the modern industrial system. As this persuades us on the goods we buy, and as it persuades us on the public policies that are necessary for its … [ Read more ]

Lester C. Thurow

When societies aren’t organized so that the old vested interests can be brushed aside, entrepreneurs cannot emerge. Social systems have to be built in which entrepreneurs have the freedom to destroy the old. Yet destroying the old can too easily be seen as a step into chaos. Societies that aren’t ready to break with the past aren’t willing to let entrepreneurs come into existence.

John Kenneth Galbraith

The two questions most asked about an economic system are whether it serves man’s physical needs and whether it is consistent with his liberty and general happiness.