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Ep. 679: Jeffrey Miron Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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The Crucial Constraints of Government

The demand for any firm's commodities are downward sloping, meaning the higher the price the firm charges, the less it will be able to sell. Firms might have some ability to nudge that relation but that takes resources and has limits. Even a monopolist knows it will lose sales when it raises price - so there's a trade-off. Government can't always just tax more or borrow more because its taxing power is finite. People aren't going to keep lending to a government forever if it is trying to spend way more than its economy could ever justify.

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