Michigan Central Railroad 3.5% Bearer Bond with attached coupons, 1902 David Glasner is frustrated that there is no satisfactory theory of the value of fiat money, noting that “it’s just…

The blogosphere has been slowly shifting from worrying about the tepid nature of the current recovery to biting its nails over the timing of the next downturn. Feeding its fears…

A few weeks ago I claimed that the so-called value premium was really just a liquidity premium. The value premium, illustrated best by the HML, or high-minus-low strategy (shorting stocks…

 The “High minus low” strategy: Source  If you haven’t read Clifford Asness and John Liew’s recent article on market efficiency, you should. There’s plenty of meat in the article, but…

I’m going to use a stock market analogy to work out the costs of manufacturing liquidity premia. In addition to paying dividends and providing price appreciation, stocks provide an amenity…

The Cider Mill, by Robin Moline In general, the real price of land has been increasing all over the world, especially since the early 1990s. (Japan and Germany are the…