Analysis Of Dalo By Richard Dalio

In this thirty-minute-long video, Dalio in a very simplistic way explains what is an economy, how it works and the main factors that are involved. He begun by defining the economy as a machine that is kept working by the transactions between governments, businesses and singular people. These transactions happen in a market, where money or credit is exchanged for goods, services or financial assets. The biggest buyer and seller of the market, the government, is divided in two parts: the central government who collects taxes to spend money and the central bank which controls the amount of credit and money in the economy.

There are three main forces that drive the economy: the productivity growth, and the short term, and long term debt cycles.