Table of Content

1 National Income Accounting

1. Why Measure Total Output by Value
2. The Strict Definition of GDP and Its Measurement
3. Be Wary of Pseudo-GDP
4. Debunking the Broken Window Fallacy
5. Why Not Explain the Price Index This Way
6. GDP Deflator and Real GDP
7. Better Rich Than Not: Defending GDP Pursuit

2 Money Theory

1. The Origin of Money
2. The Functions of Money
3. Free-market Money Triumphs Over Fiat Money
4. Does Marginal Utility of Money Diminish
5. Will Bitcoin Become Money
6. Creation and Endogeneity of Money
7. Is the Quantity Theory of Money Still Valid
8. Cantillon Effect and Real Balance Effect

3 Economic Cycle: Keynesianism

1. Keynes’ Unemployment and Fluctuation
2. Multiplier Effect: Keynes’ “Marvelous” Logic
3. The Monetary Policy Keynes Overlooked
4. Misapplication of the Three Psychological Laws
5. A Wealthier Government Harms the Economy
6. Can Perfect Counterfeit Money Stimulate the Economy
7. Keynesian Economics is Flawed Even in the Short Run

4 Economic Cycle: Supply-Side Perspectives

1. Demand: Seeing Supply Beyond Money
2. Supply-side Perspective: Multiplier Effect Revisited
3. Supply-side Perspective: Why Economy Fluctuates
4. Has the State Ironed Out Economic Cycles
5. The Logic Behind Unemployment
6. Government Intervention: Source of Economic Crises
7. No Model of Supply and Demand in Macroeconomics
8. Microeconomics Determines Macroeconomics

5 Inflation

1. Inflation Solely Driven by Excessive Money Supply
2. Can Currency Appreciation Curb Inflation
3. The Harms of Inflation
4. Inflation Mismeasurement and Its Consequences
5. How Does an Individual Measure Inflation
6. Taking Sides: Inflation or Deflation
7. Interest Rates: Nominal, Real, and Time Value

6 Broader Monetary Considerations

1. Excessive Money Supply: From Rate Hike to Credit Crunch
2. Policy U-Turn: From Easing to Rate Surge
3. MMT: When Phenomenon Masquerades as Theory
4. Is Fiat Currency a Central Bank Liability
5. Why Fiat Currency Requires Monetary Policy
6. Do Not Dance to the Tune of Macroeconomic Policies
7. Not a Market Failure: the Wenzhou Crisis

7 Growth and Distribution

1. Market and Growth
2. Freedom and Growth
3. More Wealth, Faster Growth
4. Only Investment Drives Economic Growth
5. Economic Growth is Easy
6. Economic Growth Hinges on Luck Too
7. The Logic of China’s Economic Growth
8. Growing Income Gap: Repercussion of Market Distortions
9. Beyond Equality: Measuring Fairness Through Consumption

8 Open Economy

1. Comparative Advantage
2. What Determines Exchange Rates
3. What Determines the Trade Balance
4. Why the Triffin Dilemma Fails to Hold
5. The Optimal Tariff is Zero
6. Why Trade Protectionism Persists
7. Terms of Trade Is a Useless Term
8. Sound Economics Rejects the Impossible Trinity

9 Exchange Rates: A Unique Price

1. Do Not Intervene in Prices
2. Should We Intervene in Exchange Rates
3. The Essence of Exchange Rates
4. Exchange Rate Regimes and the Spillover
5. Exchange Rate, Terms of Trade and Gains from Trade
6. Fixed Exchange Rate Is a Monetary Discipline
7. Addressing Economies Diverging from Classical Assumptions