Markets work best when people can make good decisions. But good decisions depend on good information, and in real life, information is rarely shared equally. One person in a deal often knows more than the other. A seller usually knows more about a product than a buyer. A borrower usually knows more about their own plans than a lender. This simple gap in knowledge sits at the heart of a powerful idea in economics: #information_asymmetry. The theory of information asymmetry hel

The Smoot-Hawley Tariff Act of 1930 remains one of the most discussed examples in the history of #trade_policy. Although it was introduced in a very different economic period, its educational value continues today. The law raised tariffs on thousands of imported goods entering the United States during the early years of the Great Depression. Its direct economic conditions belong to the past, but its lessons remain important for modern discussions about #tariffs, #prices, #exp