Potiphar12's Blog
An Octogenarian in the modern world

ECONOMICS FOR DUMMIES

Think of a £10 note as a human being that can either work or stay idle.  If it passes from one person to another, something happens as a result. If people think that what happens is beneficial then there will be more transactions, the £10 note will do more work and the economy will grow. If they come to think that many transactions are not beneficial, then fewer transactions will be made, the £10 note will do less work and the economy will not grow – maybe shrink. Eitherway, it is still just one £10 note. The difference is confidence.

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