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What do you want to learn? Modern economics is mostly a guessing game of what actions governments and central banks implement. Will they print money and how muc
by Geee 5y ago
What do you want to learn? Modern economics is mostly a guessing game of what actions governments and central banks implement. Will they print money and how much, will they bail out the banks or let them fall, will they lower or raise the interest rates, is there more stimulus coming, what kind of subsidies and social policies they implement etc. Some economists think that it's good that they have so much power and other economists think that they shouldn't intervene at all and let free market solve everything.
It's all mixed with politics, and generally policies are implemented to keep people short term happy, but long term not so happy.
- wffurr 5y ago...and what actual effect any of those actions has! That's the part that's mysterious to me and would be particularly interesting to learn. And more to the point, what can or should I do on an individual level? The OP was about home price to income ratio, and just like in one of the threads, I basically shopped based on monthly payment, not total price. I don't have any anchoring on the value of a particular structure or lot. Should I have made different choices?
- Geee 5y agoI don't know. These policies either increase or decrease economic activity. If economy is accelerated too much it tends to create bubbles and then a big crash. Most people think that we're in a huge bubble right now. No one knows if it will pop or if they will just keep propping it up. This video explains the basic mechanisms pretty well: https://www.youtube.com/watch?v=PHe0bXAIuk0 https://www.youtube.com/watch?v=PHe0bXAIuk0