The Economics in Game of Thrones | Exploring Markets

The Economics in Game of Thrones

"And just like the fictional long winter, everyone knows that the economic depression is coming—but no one knows when. Prediction of seasons falls unto the shoulders of the “Maesters,” who literally live in high towers and study subjects like alchemy and history. This is not unlike modern economists, whose skills lie in concocting incentives in markets, but are given the task of predicting the unpredictable."

And

"In the show, King Robert ran a deficit every year when the time was good—because he could. His “Master of Coin,” Littlefinger, was a resourceful man who found a way to borrow gold at a good rate whenever the king wished. Real life politicians, whose re-election odds depend on the amount of favors they can pass out to constituents and donors, are also always pushing to spend more. Financial deregulation and globalization, combined with seemingly good credit ratings, make such borrowing incredibly cheap and easy for national and local governments. It should not be a surprise, then, that these very governments end up borrowing and spending more than they should in good times."

Read the whole thing here: http://www.thecrimson.com/column/homo-economicus/article/2013/5/1/westeros-harvard-winter/