Monthly Archives: July 2013

Outsourcing in the Chinese Restaurant Industry

It is hardly a secret that division of labor and specialization are important keys to economic efficiency. The Chinese restaurant industry must surely count as a world leader in this regard. These days the vast majority of restaurants outsource a substantial portion of their dishwashing to third party companies. Continue reading

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High Time Preference + Low Interest Rates = ?

Under a free market regime for money, higher time preferences would translate into higher real interest rates. By contrast, under the one-size-fits-all euro regime prices will tend to rise over-proportionally in areas with higher time preference, leading to decreased competitiveness. Continue reading

Posted in Economics | Tagged , , , , | 1 Comment

How To Goose A Market – 2013 Version

Is it possible for a market maker with very ample resources to convince the public to buy and hold something which has no intrinsic and only very limited transactional value? Yes – but it takes some skill… and is hard to sustain. Continue reading

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