Why financial intermediaries fail

Note: This is post #91 in a weekly video series on basic economics. Financial intermediaries serve as a bridge between borrowers and savers. When those bridges collapse the effects can be disastrous: businesses go bankrupt, workers get laid off, and people lose their homes. Continue Reading...

What do bond markets do?

Note: This is post #90 in a weekly video series on basic economics. Most borrowers, such as individuals and small businesses, borrow through banks. But larger institutions can also borrow from a different financial intermediary: the bond market. Continue Reading...

What do banks do?

Note: This is post #88 in a weekly video series on basic economics. Borrowing and saving plays an essential role in our economy, and banks often serve as their primary link. Continue Reading...

Why we borrow and save money

Note: This is post #87 in a weekly video series on basic economics. Why do people borrow and save? How does it affect how we live our lives? And what affects the desire to borrow and save? Continue Reading...

The ‘idea equation’ and economic growth

Note: This is post #86 in a weekly video series on basic economics. As we’ve seen in recent entries in this series, ideas play a key role in economic advancement. If we can predict the future of ideas we can, in part, predict the future of economic growth. Continue Reading...

The economics of ideas

Note: This is post #84 in a weekly video series on basic economics. What spurs the growth of new ideas? The vital factor is institutions, which serve as the soil where ideas are planted, says Alex Tabarrok in this video by Marginal Revolution University. Continue Reading...

Does human capital depreciate?

Note: This is post #83 in a weekly video series on basic economics. In previous videos in this series, we’ve seen how the accumulation of physical capital only provides a temporary boost to economic growth. Continue Reading...

The Solow model and ideas

Note: This is post #84 in a weekly video series on basic economics. According to previous videos in this series, the Solow model seems to predict that we’ll always end up in a steady state with no economic growth. Continue Reading...

The Solow Model and the steady state

Note: This is post #82 in a weekly video series on basic economics. In the previous two videos in this series we’ve looked at a simplified Solow model. On one end of the model is input, and on the other end, we get output. Continue Reading...