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The Answer Is Transaction CostsAuthor: Michael Munger
"The real price of everything is the toil and trouble of acquiring it." -Adam Smith (WoN, Bk I, Chapter 5)In which the Knower of Important Things shows how transaction costs explain literally everything. Plus TWEJ, and answers to letters.If YOU have questions, submit them to our email at taitc.email@gmail.com There are two kinds of episodes here: 1. For the most part, episodes June-August are weekly, short (<20 mins), and address a few topics. 2. Episodes September-May are longer (1 hour), and monthly, with an interview with a guest.Finally, a quick note: This podcast is NOT for Stacy Hockett. He wanted you to know that..... Language: en-us Genres: News, Politics, Science, Social Sciences Contact email: Get it Feed URL: Get it iTunes ID: Get it |
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Renta Vitalicias: Pension Promises Only Work When Politics Honors Them
Episode 13
Sunday, 27 September, 2026
Send us Fan MailWe walk through how Chile converts retirement savings into lifelong income and why inflation protection and competition make the design work. Then politics collides with contract law as COVID-era withdrawals test credible commitment and raise transaction costs across the financial system. • how AFP accounts build national savings and deep capital markets • why a pension is more than a savings account, especially under longevity risk • how the renta vitalicia life annuity works and why it is irrevocable • what the UF inflation-indexed unit of account does for long-term contracts • programmed withdrawal versus annuities, including inheritance and market exposure • how the 2004 electronic quotation system reduces shopping costs and corruption • how 2019 unrest and COVID pressures drive the 10% retiro laws • why the third retiro for annuitants functions like breaking a sold contract • what “credible commitment” means for pensions, insurers, and bond markets • how the 2025 reform and a court ruling help restore trust • economics jokes, a listener letter on data center side payments, and the book pickLinks:Assessing Chile's Pension SystemChile makes major changes to pension systemIf you have questions or comments, or want to suggest a future topic, email the show at taitc.email@gmail.com !You can follow Mike Munger on Twitter at @mungowitz
