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More roundabout method of production (or more roundabout producer good) = more time it takes to break-even on investments (made on the method of production/producer good). Does that make things clearer?
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John, I am not sure if that answers my question. Those two threads talk about the interest rate sensitiveness of projects. Yes, at lower interest rates longer term projects become more feasible. I kind of know that, I guess. For instance, a $10,000 investment that promises $10,302 at the end of three years would be feasible when the interest rate is
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The question sounds simple, yes. Ceteris paribus, when the supply of loanable funds increases, the interest rates drop (basically because supply increases while demand stays constant). Now merge this with the Austrian capital theory which says that as savings increases (which conversely means final consumer demand decreases) more roundabout methods
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This is the video I have doubts about: http://www.youtube.com/watch?v=_LPh72gx6GE I am just wondering about two things: 1) Is Khan double counting savings deposits as a part of M2 money supply, since he already includes the paper dollar bill that goes into savings deposits (the one dollar paper note at the top, in this example) in Private banks 1 and
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Hey guys, I'm doing my masters dissertation on the US depression of 1920-21, and currently on the look-out for materials that I can read on. Please do suggest some good books that deal with the episode in detail. Also, feel free to suggest a possible question that could be answered as a further progression in the study of this episode in history
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I had the same question for Tom Woods sometime back, and he recommended two books: 1. "The Economics of Money, Banking, and Financial Markets" by Frederic Mishkin. 2. "Financial Markets for the Rest of Us" by Robert Hashemian.
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Rothbard says that the value of differenct currencies were "fixed" against the dollar in the form of a price-fixing mechanism (exchange rate fixed above or below the market price, so there is either a shortage or a surplus): "In recent years, therefore, governments have moved to abolish freely-fluctuating exchange rates. Instead, they
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Here are the interest rates: http://en.wikipedia.org/wiki/Eurozone#Interest_rates I am wondering why interest rates would be different in different European countries although they have a common currency and a common central bank that regulates credit supply. Something that really confuses me. Is the Eurozone's economic structure different from
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Thank you, John!
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Hey guys, I've been reading books on Austrian economic theory for years now, but I've hardly come across any book that talks about finance (I mean real-world financial markets) from the Austrian perspective. Any recommendations?