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Economics : Recent Questions and Answers (Page 5)

Find answers to your questions about Economics or help others by answering their Economics questions.

What's a "relative pair trade" for currencies?

Is the U.S. Dollar About to Crash? – PairagraphThe way I see currencies is that they are a relative pair trade. Against gold, with its stability characteristics, I...

Asked on 09/27/2021

1 answer

How do personal finance banking apps make money?

There are a bunch of apps and start ups, like Qapital and Varo that helps you save money. Some of them has monthly fees, but not all of them. How...

Asked on 09/27/2021

0 answer

Need help with Wakker (2010) on arbitrage

In Prospect Theory (2010; Cambridge UP), Peter P. Wakker has an exercise assignment 3.3.6 without solution in the book and I'm really unsure about this one. The exercise states on...

Asked on 09/26/2021 by Eric '3ToedSloth'

0 answer

Why does fiat money have value?

Or as Tobin (1992) put it: "How Can Money Have Positive Value in Exchange?"Money, however, is an embarrassment to value theory. According to standard theory, something can...

Asked on 09/26/2021

5 answer

What was the "invariable measure of value" problem and how did Sraffa solve it?

Fonseca (HET Website) writes:Only much later did Piero Sraffa (1960) finally solve the "invariable measure of value" problem and re-ignited interest in Ricardo's theory.What was the "invariable...

Asked on 09/25/2021 by user16353

1 answer

Why do high earning multiples imply a likelihood of low or even negative returns?

I quote Burton Malkiel in his May 4 2020 dialogue with Robert Shiller.Some historical perspective is useful. Even during one of the most spectacular “bubbles” in stock...

Asked on 09/25/2021

0 answer

Why would banks not want to lend, under Federal Reserve's Main Street Lending Program?

The Fed is paying 95% of the loan, so why would the banks be scared of lending?Even if the bank loses their 5% because they partaked in Fed's Main Street...

Asked on 09/25/2021

1 answer

market for lemons with signals - equilibriums vs constraints

I checked online for a question similar to this but was unable to find one. I understand the concept of pooling and separating equilibrium and can apply it to...

Asked on 09/05/2021 by raccoon

1 answer

What does Eugene Fama mean "variance of price changes over multiple days should be less than the multiple of the variance over a day"?

I transcribed A Symposium with 2013 American Nobel Laureates at Embassy of Sweden, Washington - YouTube starting at 54:45. Martin Karplus (Chemistry)  challenges Eugene Fama.Look...

Asked on 09/05/2021

1 answer

Why are real median household incomes stagnant?

This image shows US real median household income. It seems remarkable for its lack of growth over the last 20 years....

Asked on 09/05/2021

5 answer

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