Category Archives for "Fundamental"

The formula of dT>0

What is the fundamental of economics?Transaction.Mathematically, dT >0 where T means transaction.For example, the wealth between a programmer with a baking pan and a baker with a laptop is not a cooking pan plus a laptop. Instead, the baker can maximize the wealth by exchanging the baking pan with a laptop. The wealth = baking […]


The positive feedback and negative feedback mechanism

Everything is interconnected rather than linear causality.For example:Increasing the money supply would cause a lower value of the currency. This is a cause and effect relationship. In fact, there are many factors that contribute to currency depreciation. i.e. The currency is relatively weaker than other currencies; The national productivity declines; High debt; Poor economic system…etc.How […]


The Iron Triangles

In software development, we have:In economics, we have:In life, we have:For investment we have:ThoughtThe world is all about balance and trade-off.Everything is interconnected and dependent.Change in one variable will affect the others.Thinking in systems is very important.


Economic Analysis in One Graph

The economic analysis is all about the study of the currency credibility of a nation under its economic system.Example of the economic system: a developing and a developed country.For a developing country, currency credibility comes from regime power.For a developed country, currency credibility comes from central banks.The credibility is mainly affected by inflation and debt.Debt […]