Irving Fisher’s debt-deflation theory

In an effort to make sense of the current chaos, I am ploughing through a collection of readings on economics, and came across a brilliant article by Irving Fisher. Written in 1933, it lays out his (educated) intuition on the causes and dynamics of debt-deflation cycles. Frankly it is so fresh it could have been … Continue reading Irving Fisher’s debt-deflation theory →

What does ‘reduce the balance sheet’ mean?

This post is a LeanPost: it will be developed further depending on feedback from my readers. See my note here on what a LeanPost is. Many companies are these days talking about reducing the balance sheet. Another term used is de-leveraging. In the simplest terms, this just means that a company is reducing the number of … Continue reading What does ‘reduce the balance sheet’ mean? →

The history of a shop

I am in the process of writing a post on corporate finance, and have been doing some research into debt levels and leverage. It's part of an effort to understand more about companies, and specifically to answer the question of why quite a few companies have been struggling to get through the crisis. There are … Continue reading The history of a shop →