Results for “Turgot”

…tentionally drive that high return down toward the norm by expanding the capital denominator. I didn’t know that Robert Turgot had written the same in 1766. But what struck me was the impression that return, net of inflation, seemed to revert to a norm over time. Why were interes...

three millennia before Turgot wrote that down

… that risk-adjusted return is always the maximand. It is not always the same as time changes circumstances. Proof is in Turgot’s equalization of return at each moment, not from one moment to the next. That is what we see wherever we look. There is a quibble worth attention. Beh...

…e as sure of that expected recovery, not actual recovery, as of anything we know. The arguments from the maximand rule (Turgot’s insight) and the deadweight loss rule are unanswerable. An analogy from something else we all know leads to the rest of my argument. Pay over working...

…roof is sufficient. The first expresses what I call the maximand rule: we maximize risk-adjusted rate of return. Robert Turgot observed this in 1766. I'll say more about that in the next chapter. It takes little thought to realize that maximizing risk-adjusted return begins with...