Lesson 2: Efficient markets are driven by profits, freedom of choice and effective institutions.

The Worldly Philosophers is your hands-on guide to economics, how the world works overall but especially from a financial point of view, what are the social and economic systems that existed throughout history, and how certain people’s concepts got to shape the world we know today.

The Worl...

Macroeconomics focuses on aggregating these individual markets into a single economy that we can measure in terms of total output, total employment, price levels, etc.

The economists who have had the greatest impact on our lives tried their best to measure these two economic concepts and fi...

The Worldly Philosophers covers the lives and works of many of the most influential economists in history, providing detailed biographical information about each one and explaining what their contributions were.

It also provides an overview of how economic thought has developed over time a...

In a nutshell, it presents the world order from an economical point of view. Everything regarding macroeconomics these days is mathematical, social, political, and overall influenced by various events dating from centuries ago, all the way to our days.

The book follows these events and pres...

• All economists sought to understand one common concept: how society works.
• A market ruled by tradition, coercion, and rules of the past is deemed to crash.
• Adam Smith is considered the father of modern economics due to his invaluable theory presented in 1776.

Econ...

“As long as custom and command ruled the world, the problem of riches and poverty hardly struck the earlier philosophers at all, other than to be accepted with a sign or railed at as another sign of man’s inner worthlessness”

-Robert L. Heilbroner

Regardless of the theories they produced, every economist wanted to find out how to organize a society in the best way, economically and socially speaking.

The economists’ quest for this holy grail underlies their seemingly disparate approaches and theories. Yet their shared desire has led...

When states interfere, it should be only to create a legal and efficient environment for these markets to coexist in peace. No forced traditions, labor, or plans will do well in the long run, because people do not work efficiently under such rules.

To build efficient markets, states should ...

Many consider Adam Smith as the father of modern economics. That’s because he popularized a highly relevant piece of writing in 1776 titled “The Wealth of Nations”. This paper created a theory that provides a simple answer for how markets are highly efficient. And they regulate themselves through...

This market’s equilibrium point is reached at the intersection between the two forces. People set prices themselves, and due to competition, they will lower as much as they need to, or grow accordingly.

This theory also states that societies will grow at their own pace. And that they develo...

The 30-year-old person who is passionate about economics and the biographies of major influential figures in the economy, the 22-year-old student who wants to study outside their curricula, or the 34-year-old stock market investor who wants to gain a deeper understanding of the field by studying ...