Markets are social coordination processes that are continuously evolving. As institutions are the protocols for these processes, their understanding is key to investing. When these protocols succeed and prove themselves useful over time, we can eventually identify them as legal institutions. There are two main branches of institutions: Private and public. We examine them and the role they play in the investment process. Their rediscovery is an achievement of the Austrian School of Economics.
KeywordsInstitutions Markets Private institutions Irregular deposit Tantundem Loan Money Gold Gold market Banking Financial intermediation Virtual currency Bitcoin Institutional innovation Public institutions
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