We invest in the real world, not the theoretical one. But investment, monetary, economic, etc. theory is an important part of the investment process. We often think about macro trades, commodity, trades, and asset allocation in the context of supply and demand and/or economic expectations. It is important to have some grounding in theory as it helps us develop a way of thinking about the challenges we face when investing our money. The following is an interesting article from the Mises Institute on monetary policy that we think everyone should read as it provides a more comprehensive view of monetary policy than that discussed in the financial press.
