John Quiggin, an esteemed Professor of Economics at the University of Queensland and author of "Zombie Economics," dives deep into the world of interest rates and the information economy. He discusses how interest rates reflect our perceptions of value over time and the shift from manufacturing to information-centric business models. Quiggin examines the implications of low interest rates on market dynamics, the ethical challenges of misinformation, and the necessity of public investment for reliable information. A fascinating exploration of economics in our digital age!
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insights INSIGHT
Ancient Markets
Markets aren't a modern invention, existing for millennia alongside money and trade.
They rely on rules and conventions, varying across locations and depending on ownership and tradable items.
insights INSIGHT
Opportunity Cost
John Quiggin defines markets based on opportunity cost: what you give up to get something.
This applies to individuals and societies, highlighting choices and resource allocation.
insights INSIGHT
Market Equilibrium
Markets find equilibrium between sellers and buyers, reflecting opportunity costs through prices.
Ideally, this creates a no-free-lunches scenario, maximizing resource use.
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In this book, David Graeber argues that debt has a much longer history than money and that it has played a central role in shaping human societies. He debunks the myth of barter as the precursor to money, instead proposing that credit systems and debt were the primary means of trade. Graeber examines how debt has been used as a tool for social control, influenced law, religion, and politics, and has led to periodic crises and debtor revolts throughout history. The book also discusses the moral and social implications of debt, suggesting that the concept of debt is more complex than a simple economic transaction[1][2][4].
Red Plenty
Francis Spufford
Francis Spufford's "Red Plenty" is a work of historical fiction that explores the Soviet Union's ambitious quest for economic abundance during the Khrushchev era. The narrative weaves together fictional characters with real historical figures, offering a nuanced portrayal of the era's complexities. Spufford masterfully blends factual events with imaginative storytelling, creating a compelling narrative that challenges traditional historical accounts. The book delves into the Soviet Union's attempts to implement cybernetics and mathematical planning to improve economic efficiency, highlighting the inherent challenges of a centrally planned economy. Ultimately, "Red Plenty" offers a thought-provoking exploration of the Soviet dream and its ultimate failure.
QED: The Strange Theory of Light and Matter
Richard Feynman
In this book, Richard Feynman provides a lively and accessible introduction to QED, an area of quantum field theory that describes the interactions of light with charged particles. Using everyday language, spatial concepts, visualizations, and his renowned Feynman diagrams instead of advanced mathematics, Feynman explains what physicists are doing when making predictions about the behavior of light and electrons. The book covers topics such as probability amplitudes, the wavelike properties of photons, and electron-photon interactions, making complex concepts comprehensible to a broad audience.
This Time Is Different: Eight Centuries of Financial Folly
Carmen Reinhart
Kenneth Rogoff
This book provides a panoramic view of financial crises from the Middle Ages to the modern era, covering government defaults, banking panics, inflationary spikes, and other financial catastrophes. The authors, Carmen Reinhart and Kenneth Rogoff, argue that financial crises are universal rites of passage for both emerging and established markets, and that the notion 'this time is different' is a recurring misconception. They document that financial crises occur in clusters and strike with consistent frequency, duration, and ferocity, emphasizing the importance of historical perspective in understanding and mitigating future financial crises.
Zombie economics
How Dead Ideas Still Walk Among Us
John Quiggin
Economics in Two Lessons
John Quiggin
In *Economics in Two Lessons*, John Quiggin provides a masterful introduction to the key ideas behind the successes and failures of free markets. The book counters the simplistic view that markets always work well by highlighting externalities and factors that lead to suboptimal outcomes. It offers a concise history of macroeconomics and proposes policies to improve market functioning.
The idea of an “interest rate” might seem mundane and practical, in comparison to our usual topics around here, but there is a profound philosophical idea lurking in the background: if you lend me money now against the promise of me paying you back more in the future, I am relating the different values that a certain sum has to me at different moments in time. Traditionally, the interest rates set by the government have been a major tool for influencing the economy, but in recent decades they have increasingly fallen near zero. John Quiggin relates this change to the shift from manufacturing to an information economy, and we talk about what that means for the public interest in having information be reliable and widely available. And yes, there is a bit about crypto.
Sean Carroll's Mindscape: Science, Society, Philosophy, Culture, Arts, and Ideas 
