Have you heard the story about where the word salary comes from? If it relates to Roman soldiers, I’ve got some bad news. It’s one of the most popular historical myths about money.
Historical Myths About Money – From Salt to Barter
Tag: explainer
What is rent-seeking?
What is rent-seeking? There’s a strict textbook definition of socially unproductive economic activity and a broader sense of just milking the system. The truth is somewhere in between, where Covid contract VIP lanes meet secondary ticket markets.
What are Prize Linked Savings?
Prize Linked Savings are a cross between a lottery and a savings account. The chance of a big Jackpot win and the guaranteed return of funds attract depositors but as with anything in life, PLS aren’t a free lunch.
What is survivorship bias?
Survivorship bias explains why big Lottery wins are always accompanied by an image of the ecstatic winners popping champagne and gripping a giant oversized cheque. The salient image encourages us to focus on the outcome – the smiling winner- and ignore the process – millions of losing tickets. Understanding survivorship can help you make better decisions, and there’s no better place to start learning than the Mountain of Hell Downhill Bike Race.
What is a salami slicing scam?
We have a special fascination with what are known as salami slicing scams, the theft of tiny amounts of money, often through computer systems, so small that they might go unnoticed but which can add up over time to significant sums. We’ve gathered together some of the best examples of salami slicing scams.
What is expected value? How it can improve decision making
The most effective way to weigh up decisions that involve quantifiable risk is through a calculation called expected value, or EV for short. So, it’s worth spending 10 minutes understanding how to calculate expected value.
What is money?
If money works for you, why would you question it? Contactless payment in store; frictionless payment online; loans, credit cards, savings. For most Westerners there is little reason to question how those things happen, the only challenge is how much money you have, not how it works. But that isn’t the experience for everyone.
How can interest rates be negative?
The universe functions such that for every action there is a reaction, and conversely, nothing happens without some force or energy being applied. QED – This should also apply to money. But we live in times where logic seems to be breaking down, the biggest demonstration of which are negative interest rates.