What is productivity growth Ray Dalio?

Ray believes there are 3 primary forces driving our global economy: 1. Productivity growth (how much more output can you get with the same or fewer inputs) 2. Short-term debt cycle (lasts 5-8 years)

How does the economy as a whole work?

3. The three principles that describe how the economy as a whole works are: (1) a country’s standard of living depends on its ability to produce goods and services; (2) prices rise when the government prints too much money; and (3) society faces a short-run tradeoff between inflation and unemployment.

What is the big driver of economic swings?

It is money and credit exchanged for goods and services. The biggest driving force in the economy is the government. The government is broken down into two parts: The Central Government which collects taxes and spends money and the Central Bank which controls the amount of money and credit in the economy.

Who economics explained Youtube?

Michael is the founder and host of Economics Explained as well as a content director for a selection of education-based media platforms. With an education and career background in finance and economics, he has a passion for making complex topics easy and fun to learn.

How does an economy grow?

Economic growth is measured by an increase in gross domestic product (GDP), which is defined as the combined value of all goods and services produced within a country in a year. A company that buys a new manufacturing plant or invests in new technologies creates jobs, spending, which leads to growth in the economy.

How do economists measure growth?

Economists usually measure economic growth in terms of gross domestic product (GDP) or related indicators, such as gross national product (GNP) or gross national income (GNI) which are derived from the GDP calculation.

What is deleveraging of debt?

Deleveraging is when a company or individual attempts to decrease its total financial leverage. The most direct way for an entity to deleverage is to immediately pay off any existing debts and obligations on its balance sheet.

Is long-term debt cycle real?

The Long-Term Debt Cycle: ~75–100 years The long-term debt cycle is made up of numerous short-term debt cycles. Eventually, the debt burden and interest expenses grow far too large to service, and central banks respond by again cutting interest rates.