update

mba/ch44.org

@@ -32,3 +32,35 @@
 - risk free rate = real rate of interest + inflation premium
 
 ** yield curve
+- x axis: time
+- y axis: interest
+
+- you can plot on that curve what the interest rate is going to be longer term
+
+** calculate inflation
+- bureau of labor statistics
+- bls.gov
+- calculate how much stuff you bought in one year is worth at present
+  - https://data.bls.gov/cgi-bin/cpicalc.pl
+
+*** what is inflation
+- to raise interest rates the gov sells bonds
+  - banks buy bonds
+  - bonds say the gov will buy back the bond at a rate
+- this takes money out of circulation
+  - money is more scarce it is worth more
+
+- when they want to lower interest rates they buy bonds
+  - this puts more money in circulation
+
+*** most important tool of government
+- if gov cant control the price of bitcoin, it has less power
+
+*** inflation has been negative at times
+- so check out the CPI Inflation calculator
+- https://data.bls.gov/cgi-bin/cpicalc.pl
+
+  an-entire-mba-in-1-courseaward-winning-business-school-prof
+
+** basic needs to assess risks
+- a mature cash rich company pays a lower debt