Note: This is post #19 in a weekly video series on basic microeconomics.

Speculation is often considered to be morally dubious. But, can speculation actually be useful to the market process? In this video by Marginal Revolution University, economist Tyler Cowen shows that speculation can actually smooth prices over time and increase human flourishing.

(If you find the pace of the videos too slow, I’d mend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

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