The Two Markets

An introduction to economics that explains the workings of the ordinary market (the real economy) and the financial market, and — this is crucial — how the two interact. This approach answers many questions that standard textbook economics leave unresolved, because it treats these markets in isolation.

Course Dates: Open-ended
Enrollment Dates: Enroll Anytime
Who can Enroll: Anyone
Course Language: English
Price:  FREE
Ruben Alvarado
Ruben Alvarado

About this course

"The Two Markets" presents an understanding of how the economy works. It provides you with concepts that go beyond standard textbook economics. You will learn about trade balances and imbalances, the "zombie economy," the zero-interest-rate environment, the global liquidity glut, quantitative easing, and more. Also covered is historical background into e.g. the gold standard and the evolution of central banking. Throughout the presentation, the thesis of the two markets is brought to bear to elucidate otherwise intractable issues. Furthermore, the elucidation of how financial markets work will especially benefit those called to be stewards of disposable funds -- i.e., investors.

Course Structure

  • Introduction
  • The Model of the Circular Flow
  • The Role of Banking
  • The Two Markets
  • Two Kinds of Investment
  • Flows Between Economies
  • Pathology #1: Intervention
  • Barriers to Migration
  • The Gold Standard
  • Pathology #2: Short-Circuiting the Gold Standard
  • The Role of Central Banks
  • Bretton Woods and Beyond
  • Floating Exchange Rates
  • Pathology #3: Competitive Pegging
  • The Pioneer: Japan
  • The Sorcerer's Apprentice: China
  • Pathology #4: The Savings Glut and the Advent of the Zombie Economy
  • Quantitative Easing