Category Archives for "Fundamental"

The fundamental of economics

Only individuals chooseIntroductionEconomics is a social science that studies how people make choices among the alternatives readily available to them. Economics is dictated by the purposes and choices of individuals but not by the society as a whole. Although the choices of man are directed towards his own self-interests, they cannot deviate from the general […]


Production and Destruction

Production means a manufacturer while destruction means a robber.A nation with more manufacturer and less destruction is wealthier.How to be a strong country?Very simple : dt>0People have the freedom to make a transaction without any intervention. The more transaction is made, the more wealthy the nation will be.But why is North Korea so weak even […]


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 […]


Application of the Iron Triangle in Different Disciplines

In various disciplines, success is measured and determined by the aggregate performance of the portfolio components. Therefore, the key stakeholders must be vigilant to ensure these components are optimized for success. The Iron Triangle is commonly used as a heuristic tool to show the relationship between these components. In this article, we examine the use […]


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 […]