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Originally Posted by SaintessHeart
Macroeconomics is alot about survival psychology and sociology, rather than data and graphs. The graphs represent herd mentality, thus there is a pattern - I still don't know why I was given a D grade for writing a thesis based on that and debunking the idea of monetary and fiscal policies (money supply alteration in the former, tax and government spending change in the latter) as effective.
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I think you know perfectly well why you got a D
You obviously wrote what the examiners didn't want to hear and denied you.
Quote:
Originally Posted by SaintessHeart
It is the trust in the currency that makes people willing to accept it - printing more is useless when people don't trust the assets backing it up. My theory is that, people are short-sighted when it comes to image, thus their trust is often misplaced and hence the small group of winners in the world of trading and investing. Here is an interesting article that supports my point : low risk ventures, which are built on prudence and accountability, often generate more stable returns than high-risk ventures built on air. |
Yeah, it's often a big mistake that people perceive larger companies to be safer or more established in the market, so much that people forget the value of SME's that take a more cautious stance in the market. People are indeed short-sighted in that sense (blame education for that too). When people learn about things like globalization, economies of scale, bulk-buying, return-on-investment, they develop ideas that are difficult to break out of unless you experience them first-hand.
As for debt bonds, I'm just waiting for someone to start printing money in an attempt to add value to the bonds and cause the currency to inflate like a helium balloon.