Entries by Mdleminer472

Real Demand Curves In Action

The rock star Meatloaf tells us that “Two out of three ain’t bad.” But, when it comes to, say, selling your new supersonic jet, it can be. One can adequately estimate a product’s Cost and Value (as a sustainable price for the first business jet to go over 1,000 miles per hour) only run afoul […]

Interest Rates And Currency

Last time, we examined how the amounts of currency and foreign exchange reserves drove currency prices.  There are more forces at work here. A country’s prime interest rate is one of them. Below we examine the linked effect of interest rates and currency value from July 12, 2019.  The rates in the study vary widely […]

What Supports Currency Prices?

Several factors determine the price of any given country’s currency.  A 4D analysis helps you visualize those influences.  Here, we examine what held up those values on July 12, 2019. As the red Demand Plane shows us, as the amount of currency issued increases, its price generally falls. We can (and, in this case, must […]

Cryptocurrency Demand Shift

We’ve all heard about a shift in demand.  Not all of us see it in action.  With a dynamic market, we can.  The one for cryptocurrencies fits the bill. Last August, the top 100 cryptocurrencies had quantities and prices indicated by the white circles in the figure.  Those with a red dot in the center […]

The Demand For Money: Crypto vs. Fiat Currencies

Earlier, we examined Demand for fiat currencies and found they had an Upper and Outer Demand Frontier.  Those types of monies have existed for millennia.  A new form of exchange began to take off over a decade ago. Cryptocurrencies began to become popular with the advent of Bitcoin.  How does the Demand for cryptocurrencies behave […]

Production Possibility Curves Are Real

If you search Production Possibility Curves, you’ll get charts trading off product pairs such as wheat and steel, pizza and sugar, or guns and roses.  There are at least 3 problems here.  First, these charts are uniformly hypothetical.  Second, these trades involve disparate markets.  Most firms don’t play across the markets selected.  US Steel doesn’t […]

Economic & Social Distancing

We’re in the middle of a global COVID-19 pandemic.  We’ve heard about social distancing.  It sounds bad. What if we could use such measures to our advantage? In the mid-1800s, miasma theory dominated disease transmission thinking.  It said, “bad air” caused most disorders.  Dr. John Snow didn’t buy it. As cholera hit home, he decided […]

Five-Dimensional Markets

Markets move. We may show the 2012 car market Value (the upper surface of the red space at left, the points deriving that surface omitted), and the Costs for those cars (an estimate shown by the lower red surface of that space).  The region between those surfaces is the Financial Opportunity Space (FOS), where suppliers […]

Plotting in 4 Dimensions

You likely have seen readouts from GPS applications, where a device reveals its latitude and longitude.  That is a 2D plot.  Some GPS outputs also include an altitude reading.  That’s a 3D plot. In the green Value Space at left, below, the Range (analogous to longitude), MV (momentum, akin to latitude), and 2016 Price (similar […]

Measuring Demand

Two useful measures of Demand are the Demand Frontier and Aggregate Market Demand. The Demand Frontier describes a market’s outer boundary.  For the S&P 500, the dark green dots show the outermost quantities (stock volumes) and prices (split-adjusted stock prices).  The Demand Frontier is the green line of best fit through them.  It shows the […]