Regime Uncertainty: Political Risk is Transaction Cost!

Send us Fan Mail We walk through the weirdly powerful math that makes a stable $10,000 profit stream worth $50,000 in one world and $1,000,000 in another. Then we apply the same present value logic to politics and show how unpredictable rules raise transaction costs, inflate the effective discount rate, and freeze long-term investment. • the discount rate as the hidden driver of valuation • why the consol bond makes present value intuitive • P = X / R as a shortcut for long-lived assets •...