Economic work is like a very simple device. But most people cannot understand -or they disagree with its true way -this has caused many unnecessary economic pain.
Ray Dalio has a profound desire to distribute his simple but realistic instructions for the economy. Although they are atypical, they have contributed to prediction and avoiding the global financial crisis, and have provided him with good services in the past 30 years.
Although the economic system seems to be complicated, it works in a simple automation. It consists of some basic components and many uncomfortable transactions, which have been repeatedly carried out countless times. These transaction protocols are mainly forced by humans and have formed three core forces that cheer for the economy: 1. Productivity growth, 2. Short -term debt cycles and 3. long -term debt cycles.
We will study these three drivers and how to insert them into a large model to meet the economic turmoil and the assessment of what is currently happening. All stages and dynamics in the economic system are driven by transactions. Therefore, if we can understand it, we can appreciate the entire economy. People, companies, companies, banks, and government conduct all transactions. These transactions basically replace currency and credit with goods, services, stocks and other currency products.
The largest player (buyer and seller) in the government is the government. The government has two very important components: the central government collects taxes and distributes money … and a central bank that is distinguished from other participants, because it rules the system stipulates the system system. Money and credit amount in.
This goal is achieved by affecting interest rates and (with the most authentic meaning). Therefore, the key impact of central banks on loans. Credit is the most important element in the economy, obviously the most well -known. This is the most important thing because it is the biggest and most unstable component.
