Frank Shostak For most commentators lending is associated with money. However, is this the case? When a saver lends money, what he/she in fact lends to a borrower is final consumer goods that he/she did not consume. Therefore, what a lender lends to a borrower is savings and not money as such. … Read more

By Robert P. Murphy I spend a lot of time motivating difficult financial topics by constructing “thought experiments.” In a thought experiment, you can only focus on one or maybe two moving parts, while holding everything else constant. This is the way to isolate the impact of the factor you … Read more

Content: Page 48, Becoming Your Own Banker Fifth Edition It always sounds a bit strange to people when I say, “premiums and income should match.” Let’s start with a very basic fact—doesn’t all your money go through someone else’s bank now? When you get your paycheck, what do you do … Read more