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Freakonomics » How Does the Economy Actually Work? Ray Dalio Explains


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An economy is the sum of the transactions that happen in all of the markets.

The total amount of spending drives the economy. Because one person's spending is another's income.

A market consists of all of the buyers and sellers of a good or service.

Credit is the most important part of the economy.

Total Credit in the U.S. = $50 trillion.

Total Money in the U.S. = $3 trillion.

Credit causes cycles. The video explains why.

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