Cause and effectivenesss

Pre-reading for my upcoming MBA studies, I’ve hit an amusing problem. To ‘learn’ anything I have to see its underlying reasons for existence.

For example: macroeconomics is easy. I just imagine capital flows as rivers gushing between nations, interest rates and inflation as dams and locks, narrowings and widenings in the river. (And occasionally bends.) Macroecomics has cause and effect, and is therefore derivable from first principles even without a textbook. Things are ‘pushing against each other’ and causing things to happen.

Finance, however, is hard. Ultimately it’s just about debit and credit – and I’ve got a good head for figures; remember that 760 GMAT practice score?! – hardly higher maths. But because finance isn’t derivable from fundamental principles – depreciation and amortisation are just accounting conventions – I find it hard. There’s no answering the ‘why’. (Substance vs form again.)

Success on this course will mean one thing: I have to stop asking Why? and start accepting What Is.

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