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Invest Compound · Economics Library

Economics, From FirstPrinciples to Research

A complete learning path through microeconomics, macroeconomics, policy, international economics and quantitative methods: 12 levels, 60 chapters and 780 articles, built for investors and curious readers.

Start at Level 1 Investor fast track

The library at a glance

Levels12
Chapters60
Planned articles780
Published so far11

How the library fits together.

Each level groups related chapters. Each chapter has a pillar guide that explains its scope and links to twelve focused topics.

Levels 1-5

Foundations

Economic thinking, markets and prices, consumers and businesses, market limitations, and how the economy is measured. Read these levels in sequence.

Go to Level 1 Levels 6-9

Money, macro and policy

Money and banking, macroeconomic activity and growth, government policy, and the international economy.

Go to Level 6 Levels 10-11

Theory and methods

Formal theory and strategic behavior, plus the mathematics and statistics behind economic evidence.

Go to Level 10 Level 12

Advanced research

Dynamic models, heterogeneous agents, mechanism design, advanced econometrics and reproducible research.

Go to Level 12

The reading order is a guided path, not a claim that every reader has the same background. Consult the mathematics topics in Level 11 whenever formal theory needs them.

The investor fast track.

Short on time? These six chapters connect most directly to markets and portfolios.

Inflation and Price Measurement

Understand how inflation is measured before you read any rate headline.

Open the chapter

Economic Data and Indicators

Learn revisions, seasonal adjustment and base effects, so a release does not mislead you.

Open the chapter

Central Banks and Monetary Transmission

See how a policy-rate change travels through credit, markets and the economy.

Open the chapter

Interest Rates and Expectations

Real and nominal rates, the yield curve and what expectations are already priced in.

Open the chapter

Business Cycles and Recessions

How recessions are defined, dated and assessed in real time.

Open the chapter

Exchange Rates and Currency Systems

What moves currencies, and why it matters for global portfolios.

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Explore every level.

Open any chapter to see its twelve topics. Published articles link automatically.

LEVEL 1

Economic Foundations

Learn to frame economic questions, identify feasible choices, recognize incentives and distinguish models from evidence.

65 articles planned

Chapter 2

Scarcity and Opportunity Cost

Pillar guide: Scarcity and Opportunity Cost: How to Make Sense of Economic Trade-Offs

13 articles planned

View the 12 topics
  1. 01What Is Scarcity?
  2. 02Opportunity Cost Explained
  3. 03Explicit and Implicit Costs
  4. 04The Opportunity Cost of Time
  5. 05Sunk Costs and Relevant Costs
  6. 06Budget Constraints
  7. 07Production Possibilities
  8. 08Increasing Opportunity Cost
  9. 09Feasible Alternatives and Trade-Offs
  10. 10Comparative Advantage
  11. 11Bottlenecks and Shadow Prices
  12. 12The Economics of Free Offers
Chapter 3

Incentives and Marginal Decisions

Pillar guide: Incentives and Marginal Decisions: Core Guide

13 articles planned

View the 12 topics
  1. 01What Are Economic Incentives?
  2. 02Marginal Benefit and Marginal Cost
  3. 03Marginal vs Average Values
  4. 04Choosing the Next Unit
  5. 05Diminishing Marginal Benefits
  6. 06Discrete Choices and Decision Thresholds
  7. 07Incentive Compatibility in Everyday Choices
  8. 08Rewards, Penalties and Behavioral Responses
  9. 09The Extensive and Intensive Margins
  10. 10Opportunity Cost in Marginal Decisions
  11. 11Short-Run Responses vs Long-Run Adjustment
  12. 12Building a Marginal Decision Table
Chapter 4

Economic Systems and Institutions

Pillar guide: Economic Systems and Institutions: Core Guide

13 articles planned

View the 12 topics
  1. 01What Is an Economic System?
  2. 02Markets, Planning and Mixed Economies
  3. 03Property Rights and Economic Choices
  4. 04Contracts and Enforcement
  5. 05Formal vs Informal Institutions
  6. 06Prices as Coordination Signals
  7. 07Firms as Coordination Institutions
  8. 08Households and Nonmarket Production
  9. 09Government Roles in a Mixed Economy
  10. 10Institutional Change and Path Dependence
  11. 11Transaction Costs and Economic Organization
  12. 12Comparing Economic Systems Without Slogans
Chapter 5

Understanding Economic Models

Pillar guide: Understanding Economic Models: Core Guide

13 articles planned

View the 12 topics
  1. 01Choosing a Model for a Question
  2. 02Endogenous vs Exogenous Variables
  3. 03Parameters, Variables and Units
  4. 04Equations as Economic Relationships
  5. 05Accounting Identities vs Behavioral Equations
  6. 06Equilibrium vs Adjustment
  7. 07Static vs Dynamic Models
  8. 08Partial vs General Equilibrium: An Introduction
  9. 09Comparative Statics: An Introduction
  10. 10Model Calibration vs Estimation
  11. 11Sensitivity Analysis and Scenario Design
  12. 12Evaluating a Model's Scope and Limits
LEVEL 2

Markets and Prices

Explain how demand, supply, prices and responsiveness combine, then evaluate gains, losses and efficiency assumptions.

65 articles planned

Chapter 1

Demand

Pillar guide: Demand: Core Guide

13 articles planned

View the 12 topics
  1. 01What Is Demand in Economics?
  2. 02Quantity Demanded vs Demand
  3. 03The Law of Demand and Its Conditions
  4. 04Movements Along a Demand Curve
  5. 05Income and Demand Shifts
  6. 06Substitutes, Complements and Demand
  7. 07Expectations and Consumer Demand
  8. 08Individual vs Market Demand
  9. 09Demand Schedules and Inverse Demand
  10. 10Willingness to Pay vs Ability to Pay
  11. 11Network Effects and Interdependent Demand
  12. 12Constructing a Demand-Curve Case Study
Chapter 2

Supply

Pillar guide: Supply: Core Guide

13 articles planned

View the 12 topics
  1. 01What Is Supply in Economics?
  2. 02Quantity Supplied vs Supply
  3. 03The Law of Supply and Its Conditions
  4. 04Movements Along a Supply Curve
  5. 05Input Costs and Supply Shifts
  6. 06Technology and Productive Capacity
  7. 07Entry, Exit and Market Supply
  8. 08Inventory and the Timing of Supply
  9. 09Short-Run vs Long-Run Supply
  10. 10Joint Products and Supply Decisions
  11. 11Supply Disruptions and Recovery
  12. 12Constructing a Supply-Curve Case Study
Chapter 3

Market Equilibrium

Pillar guide: Market Equilibrium: Core Guide

13 articles planned

View the 12 topics
  1. 01What Is Market Equilibrium?
  2. 02Solving Demand and Supply Together
  3. 03Shortages and Surpluses
  4. 04Price Adjustment and Market Clearing
  5. 05Demand Shifts and Equilibrium Changes
  6. 06Supply Shifts and Equilibrium Changes
  7. 07Simultaneous Demand and Supply Shifts
  8. 08Price Ceilings and Rationing
  9. 09Price Floors and Excess Supply
  10. 10Per-Unit Taxes in a Market Diagram
  11. 11Subsidies and Market Outcomes
  12. 12Equilibrium Predictions vs Real Adjustment
Chapter 4

Elasticity

Pillar guide: Elasticity: Core Guide

13 articles planned

View the 12 topics
  1. 01Price Elasticity of Demand
  2. 02The Midpoint Elasticity Formula
  3. 03Elasticity vs Demand-Curve Slope
  4. 04Elasticity and Total Revenue
  5. 05Income Elasticity of Demand
  6. 06Cross-Price Elasticity of Demand
  7. 07Price Elasticity of Supply
  8. 08Short-Run vs Long-Run Elasticity
  9. 09Point Elasticity and Constant-Elasticity Demand
  10. 10Elasticity and Tax Burdens
  11. 11Interpreting Empirical Elasticity Estimates
  12. 12Building an Elasticity Scenario Calculator
Chapter 5

Economic Surplus and Market Efficiency

Pillar guide: Economic Surplus and Market Efficiency: Core Guide

13 articles planned

View the 12 topics
  1. 01Consumer Surplus Explained
  2. 02Producer Surplus Explained
  3. 03Total Surplus and Gains from Trade
  4. 04Efficient Output in a Competitive Market
  5. 05Deadweight Loss Explained
  6. 06Surplus Effects of Price Controls
  7. 07Tax Revenue and Deadweight Loss
  8. 08Subsidies and Surplus Accounting
  9. 09Distribution vs Total Surplus
  10. 10The Assumptions Behind Market Efficiency
  11. 11Potential Compensation vs Actual Compensation
  12. 12A Complete Market Welfare Comparison
LEVEL 3

Consumers and Businesses

Move from household choice to production, costs, market structure and the economic logic of business decisions.

65 articles planned

Chapter 1

Consumer Choice

Pillar guide: Consumer Choice: Core Guide

13 articles planned

View the 12 topics
  1. 01Preferences and Consumption Bundles
  2. 02Utility as a Representation of Preferences
  3. 03Indifference Curves Explained
  4. 04Marginal Rate of Substitution
  5. 05The Consumer's Budget Set
  6. 06Interior and Corner Choices
  7. 07Income Changes and Consumption
  8. 08Substitution and Income Effects
  9. 09Normal, Inferior and Giffen Goods
  10. 10Intertemporal Choice: An Introduction
  11. 11Risky Choices and Expected Utility: An Introduction
  12. 12Solving a Two-Good Consumer Example
Chapter 2

Production and Productivity

Pillar guide: Production and Productivity: Core Guide

13 articles planned

View the 12 topics
  1. 01Inputs, Outputs and Production Functions
  2. 02Total, Average and Marginal Product
  3. 03Diminishing Marginal Product
  4. 04Short Run vs Long Run in Production
  5. 05Isoquants and Input Substitution
  6. 06Marginal Rate of Technical Substitution
  7. 07Returns to Scale vs Diminishing Returns
  8. 08Labor Productivity vs Multifactor Productivity
  9. 09Capacity Utilization and Measured Productivity
  10. 10Learning by Doing and Process Improvement
  11. 11Productivity Measurement and Quality Change
  12. 12Comparing Production Technologies
Chapter 3

Business Costs and Profit

Pillar guide: Business Costs and Profit: Core Guide

13 articles planned

View the 12 topics
  1. 01Fixed, Variable and Total Costs
  2. 02Average and Marginal Cost Curves
  3. 03Why Marginal and Average Costs Differ
  4. 04Economies and Diseconomies of Scale
  5. 05Cost Minimization with Multiple Inputs
  6. 06Economic Profit vs Accounting Profit
  7. 07Break-Even and Shutdown Decisions
  8. 08Short-Run Supply from Business Costs
  9. 09Long-Run Entry and Zero Economic Profit
  10. 10Joint Costs and Cost Allocation
  11. 11Operating Leverage in an Economic Model
  12. 12A Complete Cost-and-Output Workbook
Chapter 4

Competition and Market Structure

Pillar guide: Competition and Market Structure: Core Guide

13 articles planned

View the 12 topics
  1. 01Perfect Competition: Assumptions and Outcomes
  2. 02Monopoly Pricing and Output
  3. 03Monopoly Welfare and Distribution
  4. 04Monopolistic Competition
  5. 05Oligopoly and Strategic Interdependence
  6. 06Market Concentration Measures
  7. 07Barriers to Entry and Contestability
  8. 08Differentiation and Market Power
  9. 09Natural Monopoly and Network Costs
  10. 10Innovation and Competitive Dynamics
  11. 11Competition Policy: Economic Foundations
  12. 12Comparing Market Structures in One Industry
Chapter 5

Pricing and Business Strategy

Pillar guide: Pricing and Business Strategy: Core Guide

13 articles planned

View the 12 topics
  1. 01Markup vs Margin in Pricing
  2. 02Pricing with Demand and Marginal Cost
  3. 03Price Discrimination: Conditions and Limits
  4. 04Two-Part Tariffs and Membership Pricing
  5. 05Bundling and Mixed Bundling
  6. 06Peak-Load and Congestion Pricing
  7. 07Dynamic Pricing and Capacity
  8. 08Versioning and Product Lines
  9. 09Switching Costs and Customer Retention
  10. 10Network Pricing and Two-Sided Platforms
  11. 11Pricing Experiments and Causal Measurement
  12. 12Evaluating a Pricing Strategy with Constraints
LEVEL 4

Work, Information and Market Limitations

Analyze work, factor markets, external effects, shared resources and information problems with explicit institutional assumptions.

65 articles planned

Chapter 1

Labor Markets and Wages

Pillar guide: Labor Markets and Wages: Core Guide

13 articles planned

View the 12 topics
  1. 01Labor Demand as Derived Demand
  2. 02Labor Supply and the Work-Leisure Choice
  3. 03Competitive Wage Determination
  4. 04Human Capital and Earnings
  5. 05Compensating Wage Differentials
  6. 06Labor Market Search and Matching
  7. 07Monopsony in Labor Markets
  8. 08Minimum Wages: Competing Mechanisms
  9. 09Unions and Collective Bargaining
  10. 10Discrimination and Labor Market Outcomes
  11. 11Automation, Tasks and Labor Demand
  12. 12Interpreting Wage and Employment Evidence
Chapter 2

Capital, Land and Economic Rent

Pillar guide: Capital, Land and Economic Rent: Core Guide

13 articles planned

View the 12 topics
  1. 01Physical Capital vs Financial Capital
  2. 02Capital Services and the User Cost of Capital
  3. 03Investment and the Marginal Product of Capital
  4. 04Depreciation and Capital Replacement
  5. 05Land Supply and Land Rent
  6. 06Economic Rent vs Transfer Earnings
  7. 07Scarcity Rent and Quasi-Rent
  8. 08Location and Urban Land Values
  9. 09Resource Rents and Exhaustible Assets
  10. 10Rent Seeking vs Productive Activity
  11. 11Taxing Rents: Economic Mechanisms
  12. 12Comparing Returns Across Productive Assets
Chapter 3

Externalities and Environmental Problems

Pillar guide: Externalities and Environmental Problems: Core Guide

13 articles planned

View the 12 topics
  1. 01What Is an Externality?
  2. 02Private vs Social Marginal Costs
  3. 03Positive Externalities and Underprovision
  4. 04Pigouvian Taxes and Subsidies
  5. 05Tradable Permits and Cap-and-Trade
  6. 06Standards vs Price Instruments
  7. 07Property Rights and Bargaining
  8. 08Transaction Costs and the Coase Framework
  9. 09Pollution Abatement Cost Curves
  10. 10Discounting Environmental Consequences
  11. 11Uncertainty and Environmental Policy Design
  12. 12A Costed Externality-Policy Comparison
Chapter 4

Public Goods and Common Resources

Pillar guide: Public Goods and Common Resources: Core Guide

13 articles planned

View the 12 topics
  1. 01Rivalry and Excludability
  2. 02Pure Public Goods and Free Riding
  3. 03Efficient Provision of a Public Good
  4. 04Club Goods and Membership
  5. 05Common-Pool Resources and Overuse
  6. 06Congestion and Capacity Limits
  7. 07Voluntary Contributions and Provision
  8. 08Public Provision vs Public Production
  9. 09Collective Governance of Shared Resources
  10. 10Mechanisms for Revealing Preferences
  11. 11Digital Knowledge as a Shared Resource
  12. 12Comparing Public-Good Funding Arrangements
Chapter 5

Information, Contracts and Market Failure

Pillar guide: Information, Contracts and Market Failure: Core Guide

13 articles planned

View the 12 topics
  1. 01Asymmetric Information Explained
  2. 02Adverse Selection
  3. 03Moral Hazard
  4. 04Signaling and Screening
  5. 05Principal-Agent Problems
  6. 06Incomplete Contracts
  7. 07Insurance Markets and Information
  8. 08Reputation and Repeated Transactions
  9. 09Warranties, Guarantees and Quality Signals
  10. 10Search Costs and Price Dispersion
  11. 11Disclosure Rules and Information Quality
  12. 12Diagnosing an Information Problem Before Choosing Policy
LEVEL 5

Measuring the Economy

Read national accounts, price indexes, labor statistics and distributional data without mixing definitions or units.

65 articles planned

Chapter 1

GDP and National Accounts

Pillar guide: GDP and National Accounts: Core Guide

13 articles planned

View the 12 topics
  1. 01What Does GDP Measure?
  2. 02The Expenditure Approach to GDP
  3. 03The Income Approach to GDP
  4. 04Value Added and Double Counting
  5. 05Nominal vs Real GDP
  6. 06GDP Deflators and Chain Measures
  7. 07GDP per Capita and Population
  8. 08GDP vs GNI and Domestic vs National Income
  9. 09Saving and Investment Identities
  10. 10Inventories and National Accounts
  11. 11GDP's Boundaries and Unpaid Production
  12. 12Reconciling a Small Economy's Accounts
Chapter 2

Inflation and Price Measurement

Pillar guide: Inflation and Price Measurement: Core Guide

13 articles planned

View the 12 topics
  1. 01What Is Inflation?
  2. 02How a Consumer Price Index Is Constructed
  3. 03Inflation Rates and Index Levels
  4. 04Headline vs Core Inflation
  5. 05The GDP Deflator vs Consumer Price Indexes
  6. 06Relative Prices vs General Inflation
  7. 07Substitution, Quality and New-Goods Adjustments
  8. 08Personal Inflation vs Published Inflation
  9. 09Disinflation, Deflation and Reflation
  10. 10Real Purchasing Power Across Time
  11. 11Inflation Expectations and Measurement
  12. 12Reading a Price-Index Release Critically
Chapter 3

Employment and Unemployment

Pillar guide: Employment and Unemployment: Core Guide

13 articles planned

View the 12 topics
  1. 01Employment, Unemployment and Participation
  2. 02Calculating Labor Market Rates
  3. 03Unemployment vs Underemployment
  4. 04Frictional, Structural and Cyclical Unemployment
  5. 05Labor Market Flows and Duration
  6. 06Vacancies and the Beveridge Curve
  7. 07The Natural Rate and NAIRU: Concepts and Limits
  8. 08Discouraged Workers and Hidden Slack
  9. 09Employment-Population Ratios
  10. 10Hours Worked and Labor Input
  11. 11Survey Definitions and Comparability
  12. 12Interpreting a Labor Market Report
Chapter 4

Income, Wealth and Inequality

Pillar guide: Income, Wealth and Inequality: Core Guide

13 articles planned

View the 12 topics
  1. 01Income vs Wealth
  2. 02Household vs Individual Measures
  3. 03Market Income vs Disposable Income
  4. 04Mean, Median and Income Distribution
  5. 05Lorenz Curves and the Gini Coefficient
  6. 06Percentiles and Top Income Shares
  7. 07Absolute vs Relative Poverty
  8. 08Equivalence Scales and Household Needs
  9. 09Income Mobility vs Cross-Section Inequality
  10. 10Wealth Distribution and Asset Ownership
  11. 11Redistribution and Fiscal Incidence
  12. 12Interpreting Inequality Without Mixing Measures
Chapter 5

Economic Data and Indicators

Pillar guide: Economic Data and Indicators: Core Guide

13 articles planned

View the 12 topics
  1. 01Stocks, Flows, Rates and Index Numbers in Data
  2. 02Seasonal Adjustment Explained
  3. 03Annualized vs Year-over-Year Changes
  4. 04Revisions, Vintages and Real-Time Data
  5. 05Leading, Coincident and Lagging Indicators
  6. 06Survey Data vs Administrative Data
  7. 07Sampling Error and Confidence Intervals
  8. 08Base Effects and Comparison Windows
  9. 09Composite Indexes and Weighting
  10. 10International Comparisons and PPP
  11. 11Building an Economic Indicator Dashboard
  12. 12An Evidence Checklist for Economic Headlines
LEVEL 6

Money, Banking and Monetary Policy

Trace money, credit, rates and policy through balance sheets, payment systems and financial-stability mechanisms.

65 articles planned

Chapter 1

Money and Payment Systems

Pillar guide: Money and Payment Systems: Core Guide

13 articles planned

View the 12 topics
  1. 01The Functions of Money
  2. 02Commodity Money vs Fiat Money
  3. 03Currency, Deposits and Monetary Aggregates
  4. 04Money vs Wealth vs Income
  5. 05Payment, Clearing and Settlement
  6. 06Central Bank Money vs Commercial Bank Money
  7. 07Liquidity and Moneyness
  8. 08The Demand for Money
  9. 09The Quantity Equation: Identity vs Theory
  10. 10Seigniorage and the Inflation Tax
  11. 11Digital Payments and Central Bank Digital Currency
  12. 12Tracing a Payment Through Balance Sheets
Chapter 2

Commercial Banking and Credit Creation

Pillar guide: Commercial Banking and Credit Creation: Core Guide

13 articles planned

View the 12 topics
  1. 01A Commercial Bank's Balance Sheet
  2. 02How Bank Lending Creates Deposits
  3. 03Loan Repayment and Deposit Destruction
  4. 04Reserves, Capital and Liquidity
  5. 05Capital Requirements vs Reserve Requirements
  6. 06Funding a Bank After a New Loan
  7. 07Credit Risk and Loan Pricing
  8. 08Maturity Transformation
  9. 09Bank Profitability and Net Interest Margin
  10. 10The Money Multiplier: Assumptions and Limits
  11. 11Nonbank Credit and Shadow Banking
  12. 12A Reconciled Bank-Lending Example
Chapter 3

Central Banks and Monetary Transmission

Pillar guide: Central Banks and Monetary Transmission: Core Guide

13 articles planned

View the 12 topics
  1. 01Central Bank Mandates and Objectives
  2. 02Policy Rates and Operating Frameworks
  3. 03Interest on Reserves and Rate Control
  4. 04Open Market Operations
  5. 05The Interest Rate Transmission Channel
  6. 06Credit and Bank-Lending Channels
  7. 07Exchange Rate Transmission
  8. 08Expectations and Forward Guidance
  9. 09Quantitative Easing and Portfolio Balance
  10. 10Quantitative Tightening and Balance-Sheet Reduction
  11. 11Policy Lags and Transmission Uncertainty
  12. 12Tracing a Policy-Rate Change Through the Economy
Chapter 4

Interest Rates and Expectations

Pillar guide: Interest Rates and Expectations: Core Guide

13 articles planned

View the 12 topics
  1. 01Nominal vs Real Interest Rates
  2. 02Ex Ante vs Ex Post Real Rates
  3. 03The Fisher Relationship
  4. 04Short Rates vs Long Rates
  5. 05Expectations and the Yield Curve
  6. 06Term Premiums and Rate Uncertainty
  7. 07Credit Spreads vs Risk-Free Rates
  8. 08The Neutral Interest Rate: Concept and Estimation
  9. 09Expected Inflation and Indexed Securities
  10. 10Negative Interest Rates and Effective Lower Bounds
  11. 11Policy Rules and Interest Rate Expectations
  12. 12Decomposing a Change in Borrowing Rates
Chapter 5

Financial Stability and Banking Crises

Pillar guide: Financial Stability and Banking Crises: Core Guide

13 articles planned

View the 12 topics
  1. 01Liquidity Risk vs Solvency Risk
  2. 02Bank Runs and Coordination
  3. 03Deposit Insurance and Incentives
  4. 04Lender-of-Last-Resort Support
  5. 05Fire Sales and Balance-Sheet Contagion
  6. 06Leverage Cycles and Procyclicality
  7. 07Interconnectedness and Systemic Risk
  8. 08Macroprudential vs Microprudential Policy
  9. 09Stress Tests and Scenario Analysis
  10. 10Bank Resolution and Loss Allocation
  11. 11Financial Cycles and the Real Economy
  12. 12A Banking-Stress Case Study with Reconciled Accounts
LEVEL 7

Macroeconomic Activity and Growth

Connect spending, output, expectations, fluctuations and long-run growth using progressively richer macroeconomic models.

65 articles planned

Chapter 1

Consumption, Saving and Investment

Pillar guide: Consumption, Saving and Investment: Core Guide

13 articles planned

View the 12 topics
  1. 01Consumption Functions and Disposable Income
  2. 02Average vs Marginal Propensity to Consume
  3. 03Life-Cycle and Permanent-Income Ideas
  4. 04Liquidity Constraints and Precautionary Saving
  5. 05Household Saving vs National Saving
  6. 06Investment Demand and the Cost of Capital
  7. 07Replacement vs Net Investment
  8. 08Inventories and Unplanned Investment
  9. 09Tobin's Q: An Introduction
  10. 10Saving-Investment Balance in an Open Economy
  11. 11The Paradox of Thrift: Conditions and Limits
  12. 12A Consumption-and-Investment Scenario Model
Chapter 2

Aggregate Demand and Supply

Pillar guide: Aggregate Demand and Supply: Core Guide

13 articles planned

View the 12 topics
  1. 01What Does Aggregate Demand Represent?
  2. 02Why the AD Curve Slopes Down: Model Channels
  3. 03Shifts in Aggregate Demand
  4. 04Short-Run Aggregate Supply
  5. 05Long-Run Aggregate Supply
  6. 06Demand Shocks vs Supply Shocks
  7. 07Output Gaps and Potential Output
  8. 08Stagflation in an AD-AS Framework
  9. 09Policy Responses to Different Shocks
  10. 10The Multiplier in a Simple Spending Model
  11. 11Imports, Taxes and Multiplier Leakages
  12. 12Comparing AD-AS Scenarios Without Treating Diagrams as Evidence
Chapter 3

Business Cycles and Recessions

Pillar guide: Business Cycles and Recessions: Core Guide

13 articles planned

View the 12 topics
  1. 01What Is a Business Cycle?
  2. 02Recession Definitions and Dating
  3. 03Comovement Across Economic Indicators
  4. 04Consumption and Investment Over the Cycle
  5. 05Inventories, Credit and Amplification
  6. 06Okun's Law: Interpretation and Limits
  7. 07Automatic Stabilizers Across the Cycle
  8. 08Financial vs Real-Economy Shocks
  9. 09Recoveries, Hysteresis and Scarring
  10. 10Real-Time Recession Assessment
  11. 11Soft Landings vs Hard Landings
  12. 12Reconstructing a Recession with Data Vintages
Chapter 4

Economic Growth and Productivity

Pillar guide: Economic Growth and Productivity: Core Guide

13 articles planned

View the 12 topics
  1. 01Growth Rates and Compound Growth
  2. 02Growth Accounting
  3. 03Capital Deepening and Diminishing Returns
  4. 04The Solow Model: An Introduction
  5. 05Steady States and Transitional Growth
  6. 06Convergence: Absolute vs Conditional
  7. 07Technology and Total Factor Productivity
  8. 08Human Capital and Long-Run Growth
  9. 09Ideas, Innovation and Endogenous Growth
  10. 10Institutions and Growth Mechanisms
  11. 11Population, Aging and Growth per Capita
  12. 12Building a Transparent Long-Run Growth Scenario
Chapter 5

Expectations and Macroeconomic Adjustment

Pillar guide: Expectations and Macroeconomic Adjustment: Core Guide

13 articles planned

View the 12 topics
  1. 01Adaptive vs Rational Expectations
  2. 02Expected vs Unexpected Policy Changes
  3. 03Anticipated Inflation and Wage Setting
  4. 04Sticky Prices and Sticky Wages
  5. 05Expectations-Augmented Phillips Curves
  6. 06Credibility and Policy Announcements
  7. 07Time Inconsistency in Macroeconomic Policy
  8. 08Self-Fulfilling Expectations and Coordination
  9. 09Learning Under Uncertainty
  10. 10News Shocks vs Realized Shocks
  11. 11Expectation Surveys vs Market-Implied Measures
  12. 12Comparing Adjustment Paths After the Same Shock
LEVEL 8

Government and Public Policy

Compare taxation, spending, debt and stabilization policies using transparent counterfactuals and distributional reasoning.

65 articles planned

Chapter 1

Taxation and Economic Incidence

Pillar guide: Taxation and Economic Incidence: Core Guide

13 articles planned

View the 12 topics
  1. 01Tax Bases, Rates and Liabilities
  2. 02Average vs Marginal Tax Rates
  3. 03Statutory vs Economic Incidence
  4. 04Elasticity and the Division of Tax Burdens
  5. 05Labor Taxes and Work Incentives
  6. 06Consumption Taxes and Household Burdens
  7. 07Capital Income Taxes and Investment
  8. 08Corporate Taxes in Partial and General Equilibrium
  9. 09Tax Expenditures and Preferential Treatment
  10. 10Tax Avoidance, Evasion and Compliance Costs
  11. 11Efficiency Costs vs Distributional Goals
  12. 12A Transparent Tax-Reform Comparison
Chapter 2

Public Spending and Public Services

Pillar guide: Public Spending and Public Services: Core Guide

13 articles planned

View the 12 topics
  1. 01Classifying Public Expenditure
  2. 02Transfers vs Government Purchases
  3. 03Current vs Capital Spending
  4. 04Public Investment and Maintenance
  5. 05Cost-Benefit Analysis for Public Projects
  6. 06Cost-Effectiveness vs Cost-Benefit Analysis
  7. 07Valuing Nonmarket Benefits
  8. 08Discount Rates in Public Project Appraisal
  9. 09Procurement Incentives and Contract Design
  10. 10Service Quality vs Spending Totals
  11. 11Distributional Weights in Project Evaluation
  12. 12Building a Public-Service Evaluation Framework
Chapter 3

Deficits, Debt and Fiscal Sustainability

Pillar guide: Deficits, Debt and Fiscal Sustainability: Core Guide

13 articles planned

View the 12 topics
  1. 01Deficits vs Public Debt
  2. 02Primary vs Overall Balances
  3. 03Gross vs Net Debt
  4. 04Debt-to-GDP Dynamics
  5. 05Interest-Growth Differentials
  6. 06Debt Maturity and Refinancing Risk
  7. 07Domestic vs Foreign-Currency Debt
  8. 08Cyclical vs Structural Budget Balances
  9. 09Contingent Liabilities and Fiscal Risk
  10. 10Debt Sustainability Scenarios
  11. 11Fiscal Space: Meaning and Limits
  12. 12Reconciling a Government Debt Path
Chapter 4

Fiscal Stabilization and Policy Coordination

Pillar guide: Fiscal Stabilization and Policy Coordination: Core Guide

13 articles planned

View the 12 topics
  1. 01Automatic vs Discretionary Fiscal Stabilization
  2. 02Fiscal Multipliers and Economic Conditions
  3. 03Spending vs Tax-Based Stimulus
  4. 04Timing, Targeting and Temporary Measures
  5. 05Crowding Out and Crowding In
  6. 06Fiscal Policy at the Effective Lower Bound
  7. 07Monetary-Fiscal Coordination
  8. 08Rules vs Discretion in Fiscal Policy
  9. 09Fiscal Consolidation and Adjustment Paths
  10. 10Open-Economy Leakages from Stimulus
  11. 11State and Local Budget Constraints
  12. 12Comparing Stabilization Packages Under Uncertainty
Chapter 5

Public Policy Evaluation

Pillar guide: Public Policy Evaluation: Core Guide

13 articles planned

View the 12 topics
  1. 01Defining a Policy Objective and Counterfactual
  2. 02Theory of Change and Mechanisms
  3. 03Inputs, Outputs, Outcomes and Impacts
  4. 04Ex Ante vs Ex Post Evaluation
  5. 05Distributional Effects and Stakeholder Mapping
  6. 06Behavioral Responses and Policy Take-Up
  7. 07Administrative Burdens and Implementation
  8. 08Pilot Programs and External Validity
  9. 09Unintended Effects and Spillovers
  10. 10Evidence Quality and Decision Thresholds
  11. 11Policy Trade-Offs Under Uncertainty
  12. 12Writing a Reproducible Policy Evaluation Brief
LEVEL 9

International Economics and Development

Analyze trade, currencies, external accounts and development while distinguishing aggregate gains from adjustment and distribution.

65 articles planned

Chapter 1

International Trade and Comparative Advantage

Pillar guide: International Trade and Comparative Advantage: Core Guide

13 articles planned

View the 12 topics
  1. 01Ricardian Comparative Advantage with Many Prices
  2. 02Autarky vs Trade Equilibrium
  3. 03Terms of Trade and Trading Gains
  4. 04Factor Endowments and Trade Patterns
  5. 05Specific Factors and Short-Run Distribution
  6. 06Trade and Factor Returns
  7. 07Economies of Scale and Intra-Industry Trade
  8. 08Firm Heterogeneity and Exporting
  9. 09Trade Costs and the Gravity Model
  10. 10Adjustment Costs and Worker Reallocation
  11. 11Trade Gains vs Compensation of Losers
  12. 12A Reconciled Two-Country Trade Model
Chapter 2

Trade Policy and Global Supply Chains

Pillar guide: Trade Policy and Global Supply Chains: Core Guide

13 articles planned

View the 12 topics
  1. 01Tariffs and Domestic Market Outcomes
  2. 02Import Quotas and Quota Rents
  3. 03Export Taxes and Subsidies
  4. 04Effective Protection and Imported Inputs
  5. 05Rules of Origin and Trade Agreements
  6. 06Global Value Chains and Value-Added Trade
  7. 07Supply-Chain Concentration and Resilience
  8. 08Trade Diversion vs Trade Creation
  9. 09Retaliation and Strategic Trade Policy
  10. 10National Security Objectives and Economic Costs
  11. 11Trade Policy Uncertainty and Investment
  12. 12Comparing Supply-Chain Policy Scenarios
Chapter 3

Exchange Rates and Currency Systems

Pillar guide: Exchange Rates and Currency Systems: Core Guide

13 articles planned

View the 12 topics
  1. 01Exchange Rate Quotes and Cross Rates
  2. 02Nominal vs Real Exchange Rates
  3. 03Effective Exchange Rate Indexes
  4. 04Currency Demand and Supply
  5. 05Purchasing Power Parity
  6. 06Covered Interest Parity
  7. 07Uncovered Interest Parity and Risk
  8. 08Fixed vs Floating Exchange Rates
  9. 09Currency Intervention and Reserves
  10. 10The Impossible Trinity
  11. 11Exchange Rate Pass-Through
  12. 12A Currency-Market Adjustment Case Study
Chapter 4

Balance of Payments and International Finance

Pillar guide: Balance of Payments and International Finance: Core Guide

13 articles planned

View the 12 topics
  1. 01The Balance of Payments Framework
  2. 02Current Account Components
  3. 03Financial Account and Sign Conventions
  4. 04Net International Investment Position
  5. 05Current Accounts and Saving-Investment Balances
  6. 06Valuation Changes vs Financial Flows
  7. 07Capital Inflows and Domestic Credit
  8. 08Sudden Stops and External Financing
  9. 09Currency Mismatch and External Debt
  10. 10Reserve Adequacy: Concepts and Limits
  11. 11Global Imbalances and Adjustment
  12. 12Reconciling an Open Economy's External Accounts
Chapter 5

Development, Institutions and Structural Change

Pillar guide: Development, Institutions and Structural Change: Core Guide

13 articles planned

View the 12 topics
  1. 01Growth vs Economic Development
  2. 02Human Development and Multidimensional Outcomes
  3. 03Structural Transformation Across Sectors
  4. 04Agricultural Productivity and Rural Change
  5. 05Urbanization and Agglomeration
  6. 06Health, Education and Productive Capabilities
  7. 07Informality and Firm Productivity
  8. 08State Capacity and Institutional Constraints
  9. 09Infrastructure and Market Access
  10. 10Credit Constraints and Development
  11. 11Development Traps and Multiple Equilibria
  12. 12Evaluating a Development Intervention in Context
LEVEL 10

Intermediate Theory and Strategic Behavior

Develop formal choice, strategic interaction, equilibrium, behavioral evidence and intermediate macroeconomic analysis.

65 articles planned

Chapter 1

Mathematical Consumer and Producer Theory

Pillar guide: Mathematical Consumer and Producer Theory: Core Guide

13 articles planned

View the 12 topics
  1. 01Constrained Choice and Lagrange Multipliers
  2. 02Utility Maximization and Marshallian Demand
  3. 03Expenditure Minimization and Hicksian Demand
  4. 04The Slutsky Equation
  5. 05Indirect Utility and Expenditure Functions
  6. 06Duality in Consumer Theory
  7. 07Cost Functions and Conditional Input Demand
  8. 08Profit Functions and Hotelling's Lemma
  9. 09Envelope Theorems in Economic Choice
  10. 10Kuhn-Tucker Conditions and Corner Solutions
  11. 11Revealed Preference and Integrability
  12. 12A Fully Solved Consumer-Producer Problem Set
Chapter 2

Game Theory and Strategic Interaction

Pillar guide: Game Theory and Strategic Interaction: Core Guide

13 articles planned

View the 12 topics
  1. 01Normal-Form Games and Payoffs
  2. 02Dominant Strategies and Iterated Elimination
  3. 03Nash Equilibrium in Pure Strategies
  4. 04Mixed-Strategy Equilibrium
  5. 05Extensive-Form Games and Backward Induction
  6. 06Subgame Perfection and Credible Threats
  7. 07Repeated Games and Cooperation
  8. 08Bayesian Games and Incomplete Information
  9. 09Signaling Games and Beliefs
  10. 10Bargaining Models
  11. 11Auctions: Strategic Foundations
  12. 12Solving a Strategic Interaction from Assumptions to Equilibrium
Chapter 3

General Equilibrium and Welfare

Pillar guide: General Equilibrium and Welfare: Core Guide

13 articles planned

View the 12 topics
  1. 01Exchange Economies and the Edgeworth Box
  2. 02Competitive Equilibrium in Exchange
  3. 03Production in General Equilibrium
  4. 04Excess Demand and Walras' Law
  5. 05Existence vs Uniqueness vs Stability
  6. 06The First Welfare Theorem
  7. 07The Second Welfare Theorem
  8. 08Lump-Sum Transfers and Redistribution
  9. 09Incomplete Markets and Welfare
  10. 10Externalities in General Equilibrium
  11. 11Multiple Equilibria and Coordination
  12. 12A Numerical General Equilibrium Example
Chapter 4

Behavioral and Experimental Economics

Pillar guide: Behavioral and Experimental Economics: Core Guide

13 articles planned

View the 12 topics
  1. 01Reference Dependence and Loss Aversion
  2. 02Prospect Theory and Probability Weighting
  3. 03Present Bias and Time Inconsistency
  4. 04Mental Accounting and Framing
  5. 05Limited Attention and Salience
  6. 06Overconfidence and Belief Updating
  7. 07Social Preferences and Reciprocity
  8. 08Defaults and Choice Architecture
  9. 09Incentives That Crowd Out Motivation
  10. 10Laboratory vs Field Experiments
  11. 11Replication, Power and Preregistration
  12. 12Designing a Behavioral Intervention with Welfare Criteria
Chapter 5

Intermediate Macroeconomic Models

Pillar guide: Intermediate Macroeconomic Models: Core Guide

13 articles planned

View the 12 topics
  1. 01The IS Curve from Spending Decisions
  2. 02Money-Market Equilibrium and LM
  3. 03IS-LM Comparative Statics
  4. 04The IS-MP Model
  5. 05Open-Economy Mundell-Fleming Frameworks
  6. 06The New Keynesian Three-Equation Model
  7. 07Monetary Policy Rules and Determinacy
  8. 08Demand and Supply Shocks in a Dynamic Model
  9. 09The Phillips Curve Across Model Versions
  10. 10Fiscal Policy in Intermediate Models
  11. 11Model Closure and Policy Comparisons
  12. 12Solving and Comparing Intermediate Macro Scenarios
LEVEL 11

Quantitative Economics and Evidence

Build the mathematics, statistics, regression, identification and forecasting skills needed to evaluate economic evidence.

65 articles planned

Chapter 1

Mathematics for Economics

Pillar guide: Mathematics for Economics: Core Guide

13 articles planned

View the 12 topics
  1. 01Functions, Domains and Economic Units
  2. 02Exponents, Logarithms and Growth
  3. 03Derivatives and Marginal Relationships
  4. 04Partial Derivatives and Total Differentials
  5. 05Unconstrained Optimization
  6. 06Equality-Constrained Optimization
  7. 07Inequality Constraints and Complementary Slackness
  8. 08Integrals, Areas and Accumulation
  9. 09Matrices and Linear Systems
  10. 10Eigenvalues and Dynamic Stability
  11. 11Difference and Differential Equations
  12. 12A Mathematics-to-Economics Translation Workbook
Chapter 2

Probability and Statistical Inference

Pillar guide: Probability and Statistical Inference: Core Guide

13 articles planned

View the 12 topics
  1. 01Random Variables and Probability Distributions
  2. 02Expectation, Variance and Covariance
  3. 03Conditional Probability and Bayes' Rule
  4. 04Sampling Distributions and Standard Errors
  5. 05The Law of Large Numbers and Central Limit Theorem
  6. 06Estimators, Bias and Consistency
  7. 07Confidence Intervals and Coverage
  8. 08Hypothesis Tests and P-Values
  9. 09Statistical Power and Sample Size
  10. 10Multiple Testing and False Discoveries
  11. 11Bootstrap and Randomization Inference
  12. 12Interpreting Statistical Uncertainty in Economic Evidence
Chapter 3

Regression and Econometrics

Pillar guide: Regression and Econometrics: Core Guide

13 articles planned

View the 12 topics
  1. 01Population Regression and Conditional Means
  2. 02Ordinary Least Squares from First Principles
  3. 03Regression Coefficients and Economic Units
  4. 04OLS Assumptions and Sampling Properties
  5. 05Omitted-Variable Bias
  6. 06Functional Forms, Logs and Interactions
  7. 07Heteroskedasticity and Robust Standard Errors
  8. 08Clustered Errors and Dependence
  9. 09Multicollinearity vs Identification
  10. 10Prediction vs Causal Interpretation
  11. 11Model Diagnostics and Specification
  12. 12A Reproducible Regression Study
Chapter 4

Causal Inference and Policy Evaluation

Pillar guide: Causal Inference and Policy Evaluation: Core Guide

13 articles planned

View the 12 topics
  1. 01Potential Outcomes and Treatment Effects
  2. 02Random Assignment and Noncompliance
  3. 03Selection Bias and Confounding
  4. 04Matching and Conditional Independence
  5. 05Instrumental Variables and LATE
  6. 06Difference-in-Differences
  7. 07Event Studies and Parallel Trends
  8. 08Regression Discontinuity
  9. 09Synthetic Control Methods
  10. 10Spillovers and Interference
  11. 11Sensitivity Analysis for Causal Claims
  12. 12A Policy Evaluation with Explicit Identification Assumptions
Chapter 5

Time Series and Economic Forecasting

Pillar guide: Time Series and Economic Forecasting: Core Guide

13 articles planned

View the 12 topics
  1. 01Time-Series Structure and Dependence
  2. 02Stationarity and Unit Roots
  3. 03Autoregressive and Moving-Average Models
  4. 04Forecast Evaluation and Baselines
  5. 05Seasonality and Calendar Effects
  6. 06Vector Autoregressions
  7. 07Cointegration and Error Correction
  8. 08Structural Breaks and Regime Changes
  9. 09Real-Time Data and Forecast Revisions
  10. 10Nowcasting with Mixed-Frequency Indicators
  11. 11Forecast Intervals and Scenario Uncertainty
  12. 12Building a Reproducible Economic Forecasting Pipeline
LEVEL 12

Advanced Economics and Research

Study dynamic and heterogeneous-agent models, advanced contracts and estimation, then complete reproducible research.

65 articles planned

Chapter 1

Dynamic Economic Models

Pillar guide: Dynamic Economic Models: Core Guide

13 articles planned

View the 12 topics
  1. 01Intertemporal Optimization and State Variables
  2. 02Euler Equations and Consumption Smoothing
  3. 03Bellman Equations and the Principle of Optimality
  4. 04Value Function Iteration
  5. 05Policy Function Iteration
  6. 06The Stochastic Growth Model
  7. 07Dynamic Constraints and Occasionally Binding Limits
  8. 08Transversality and Terminal Conditions
  9. 09Linearization Around a Steady State
  10. 10Numerical Accuracy and Euler Errors
  11. 11Transition Dynamics and Impulse Responses
  12. 12Solving and Validating a Dynamic Model
Chapter 2

Advanced Macroeconomics and Heterogeneous Agents

Pillar guide: Advanced Macroeconomics and Heterogeneous Agents: Core Guide

13 articles planned

View the 12 topics
  1. 01The Representative-Agent Benchmark
  2. 02Incomplete Markets and Precautionary Saving
  3. 03The Aiyagari Model
  4. 04The Distribution of Household Wealth
  5. 05Heterogeneous Marginal Propensities to Consume
  6. 06HANK Models: Core Mechanisms
  7. 07Aggregate vs Idiosyncratic Risk
  8. 08Distributional Effects of Monetary Policy
  9. 09Fiscal Transfers with Household Heterogeneity
  10. 10Search-and-Matching Macroeconomics
  11. 11Sequence-Space Solution Methods: An Introduction
  12. 12Comparing Aggregate and Distributional Model Predictions
Chapter 3

Mechanism Design and Advanced Contracts

Pillar guide: Mechanism Design and Advanced Contracts: Core Guide

13 articles planned

View the 12 topics
  1. 01Social Choice and Mechanism Design
  2. 02Direct Mechanisms and the Revelation Principle
  3. 03Incentive Compatibility and Individual Rationality
  4. 04Optimal Screening and Information Rents
  5. 05Hidden-Action Contracting
  6. 06Dynamic Incentives and Commitment
  7. 07Optimal Auctions and Revenue Equivalence
  8. 08Matching Markets and Stability
  9. 09Public-Good Mechanisms
  10. 10Multidimensional Types and Design Limits
  11. 11Robust Mechanism Design
  12. 12Constructing and Checking an Incentive-Compatible Mechanism
Chapter 4

Advanced Econometrics and Structural Estimation

Pillar guide: Advanced Econometrics and Structural Estimation: Core Guide

13 articles planned

View the 12 topics
  1. 01Moment Conditions and Identification
  2. 02Generalized Method of Moments
  3. 03Maximum Likelihood and Quasi-Likelihood
  4. 04Panel Fixed Effects and Dynamic Panels
  5. 05Discrete Choice Models
  6. 06Selection Models and Missing Outcomes
  7. 07Structural vs Reduced-Form Estimation
  8. 08Simulated Method of Moments
  9. 09Bayesian Estimation and Posterior Checks
  10. 10Weak Identification and Robust Inference
  11. 11Machine Learning, Cross-Fitting and Orthogonal Scores
  12. 12Estimating and Validating a Structural Economic Model
Chapter 5

Research Methods and Replication

Pillar guide: Research Methods and Replication: Core Guide

13 articles planned

View the 12 topics
  1. 01Turning a Question into a Research Design
  2. 02Literature Mapping and Contribution
  3. 03Data Provenance, Licensing and Ethics
  4. 04Preregistration and Analysis Plans
  5. 05Measurement and Construct Validity
  6. 06Reproducible Code and Data Pipelines
  7. 07Robustness vs Specification Searching
  8. 08Replication and Computational Verification
  9. 09External Validity and Transportability
  10. 10Writing Tables, Figures and Limitations
  11. 11Peer Review and Responding to Criticism
  12. 12A Complete Economics Research and Replication Project

How every article is written.

The same standards apply from Level 1 to Level 12.

One question per article

Each topic answers a distinct primary question, with explained examples and clear assumptions.

Depth you can rely on

Pillar guides run at least 5,000 words and topic articles at least 3,500, so ideas are explained rather than summarized.

Sources and transparency

Sources are attributed where appropriate, and reasoning is shown. See our editorial policy and methodology.

From economics to your portfolio.

Quick links that connect the economy to investing decisions.

Markets

How rates, inflation and earnings move prices.

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Inflation

Definition, measurement and why investors watch it.

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Interest rates

The price of money and its effect on every asset.

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Recessions

How downturns are defined and why they matter.

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GDP

The headline measure of economic output.

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Investing principles

Turn economic understanding into a written plan.

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Questions about the library.

Where should a beginner start?

Start at Level 1, Chapter 1, Economic Thinking, and move through Levels 1 to 5 in order. Use the glossary for any unfamiliar term.

Do I need to read the library in order?

No. The levels are a guided path, not a requirement. Investors can start with the fast-track chapters, and anyone can jump to a topic using search.

How many articles are there?

The library plans 60 pillar guides and 720 topic articles, 780 articles in all, with room to add expansion articles. New articles appear on this page as they are published.

Do I need mathematics for the advanced levels?

Levels 10 to 12 use formal theory and quantitative methods. The Level 11 mathematics topics are designed to be consulted before that material.

Is this investment advice?

No. The library is educational and does not recommend any investment. Read the financial disclaimer for details.