Tag Archives: markets

Fair Trade cocoa price, 1996-2006 You can see from the above graph that fair trade certifiers aim not just to raise, but to raise and stabilise the price a farmer or cooperative receives for produce. Fact: There are many fair trade certifying … Continue reading

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How to split up a mortgage into pieces. Take $1000 of payments and split it up into: floater $400 + interest rate inverse floater $400 − interest rate equity $200 of first-risk payment These three can be sold to different types of customers, … Continue reading

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Markets can indeed organize very complex production processes, to an extent that might well seem miraculous to anyone who tried to reason about it in the abstract. But that doesn’t mean that markets are the only, or invariably the best, … Continue reading

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When the price of a stock can be … set at the margin by the most emotional person, or the greediest person, or the most depressed person, it is hard to argue that the market prices rationally. Warren Buffett

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No-arbitrage conditions are so often assumed in economics papers that they’ve come to seem magical.  As I read more books by arbitrageurs, the obvious has become apparent:  real people have the job of making financial markets equilibrate. Given that companies … Continue reading

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