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Ask HN: How can I learn macroeconomics properly?

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Re: Ask HN: How can I learn macroeconomics properly?

#21
I have a degree in economics. Both of my parents have PhD’s in economics from MIT and were professors of economics with dozens of published works. I grew up around economists including multiple Nobel prizes winners in economics.

None of this has anything to do with being good at investing on a personal level. Like nothing, in fact I would argue that it’s probably harmful and in my experience causes people to overthink things.

Economics as a profession has a fucking terrible track record of predicting financial markets or broad macroeconomic trends. At this point I’m not sure it’s even clear what economics is for but I can say with confidence that it’s definitely not the place to start if you want to get better at investing.

Re: Ask HN: How can I learn macroeconomics properly?

#22
Here's a list of podcasts that touch on macro: - Eurodollar University - The Grant Williams Podcast - Grant's Current Yield - Hidden Forces - Inside Baseball with Old Chestnut - Keeping it Simple with Simplify Asset Management - Library of Mistakes - The Macro Compass - Macro Musings - The Macro Trading Floor - Macro Voices - The Market Huddle - Money Sense - On The Margin - Real Conversations - Real Vision Daily Briefing - The Rebel Capitalist Show - Super Investors and the Art of Worldly Wisdom - Wealthion

The best thing you can do is be open to hearing all opinion/theories. Some people will contradict others, but over time you figure out who is right and who is not.

In addition, I also watch a few indices in my stock app for a high level overview. These are the treasury yields, corporate credit spreads, dollar index, s&p 500, nasdaq, etc. I used to follow much more, but it's not needed for higher level macro.

Re: Ask HN: How can I learn macroeconomics properly?

#24
post #18

I don't think it's possible to learn macroeconomics "properly", in the sense that one can learn e.g. quantum physics "properly". I pick quantum physics because not every expert agrees on some of the tail end of theoretical things, but there's broad agreement on the main parts of it. Those main parts are more than the average person will ever need to use. This is not remotely true with respect to macroeconomics. It's…

The saying goes, "if you want three opinions, ask two economists looking at one set of data".

Re: Ask HN: How can I learn macroeconomics properly?

#25
Having read threads here on economics I can confidently say, don't start by asking a technology forum.

That said, Romer's Advanced Macroeconomics, Acemoğlu's Intro to Modern Economic Growth and Ljungqvist and Sargent's Recursive Macro Theory are good books.

But if you want to be a good investor, just put your money into index funds. You'll easily outperform a large majority.

edit: in addition, the topics you're looking for are only very loosely related to macro. You're looking more into monetary policy, asset pricing and financial economics. Don't take the advice of people who bundle them all together.

Re: Ask HN: How can I learn macroeconomics properly?

#26
It sounds to me like you're interested in "financial economics" or "money & banking."

Having an interest in these topics myself, I find that they are less about macroeconomics as a whole, which, in the mainstream formulation, is about national income accounting, aggregate demand, general equilibrium, production functions, the business cycle, etc., and are more about the microeconomics of particular markets e.g. the market for money, the market for bonds. I'd have a solid grasp of microeconomics, and then learn national income accounting (`C + I + G + X - M = Y` i.e. the sum of consumption, investment & government spending, less imports equals the national income (GDP/GNP), as well as the capital accounts identities), some ideas about the business cycle and maybe a bit about aggregate demand. Then I'd dive into something purely about money and banking. You'll have the tools you need to think about how markets work, and ideas like the efficient market hypothesis should make sense (within the frame of the model).

I learned this stuff in school, so it's hard for me to give great concrete advice beyond topics, but I've heard good things about Sowell's "Basic Economics," Malkiel's "A Random Walk down Wall Street," and then a personal favorite of mine Vernon Smith's "Rationality in Economics." The latter is truly insightful, but might be difficult if you don't have some of the ground matter (e.g. "what are supply and demand?" "What is a firm?") covered first.

Re: Ask HN: How can I learn macroeconomics properly?

#28
Honestly. Start with learning what very basic economics is - "Wealth of Nations", "Human Action", etc and then try extrapolating your perception based on mastery of the principles. In practice this means deciding for yourself.

Modern macroeconomics is an extremely controversial field to say the least and if you start from top (the propaganda-like crazy statements that both sides make), the result would be that none of the viewpoints would ever make any sense to you :)

Re: Ask HN: How can I learn macroeconomics properly?

#29
Perry Mehrling's "Money and Banking" [1]. What I enjoyed about this course is that Mehrling focuses on how the economy works _mechanistically_, on what is actually happening on balance sheets throughout the economy. For me, this really pulled back the curtain on exactly the stuff you mention above (interest rates, central banks, QE).

[1] https://www.youtube.com/watch?v=KNEouYM5wRE&list=PLSuwqsAnJM...

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