how the economic machine works summary
Summary of Ray Dalios Economic Principles. The total amount of spending drives the economy.
Its the building block of the economic machine.
. If you divide the amounts spent by the quantity sold you get the price and thats it thats a transaction. A transaction is when someone buys and someone sells. How the Economic Machine Works Three Forces Drive the Economy.
How the Money Machine Works The Economy is made up of markets which are made up of transactions. View How economic Machine Works by Ray Dalio Summarydocx from ECONOMIA 12 at Autonomous University of the State of Mexico. All cycles and all forces in an economy are driven by transactions.
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Transactions are essentially the exchange of money or credit between a buyer and seller. So if we can understand transactions we can understand the whole economy. Over time we learn we accumulate knowledge we work and all of this drives productivity growth.
You can buy a beer at a bar with cash and that would be a cash transaction.
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