FYI, Factor market: where factors of production such as labor, capital and resources are bought and sold. (www.investorwords.com) Is This How Our Audience.

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Presentation transcript:

FYI, Factor market: where factors of production such as labor, capital and resources are bought and sold. ( Is This How Our Audience Sees the Economy?

Banks Consumers Finished Producers Government Central Bank Raw producers

Banks Consumers Finished Producers Government Central Bank Raw producers

Banks Consumers Finished Producers Government Central Bank Raw producers Savings

Banks Consumers Finished Producers Government Central Bank Raw producers SavingsLoans

Banks Consumers Finished Producers Government Central Bank Raw producers SavingsLoansPrincipal, interest

Banks Consumers Finished Producers Government Central Bank Raw producers SavingsLoansPrincipal, interestTaxes

Banks Consumers Finished Producers Government Central Bank Raw producers SavingsLoansPrincipal, interestTaxes

Banks, financial markets Consumers Finished Producers Government Central Bank Raw producers Savings, investments Loans Principal, interest Taxes Money in/out Political influence

Consumers Finished Producers Government Central Bank Raw producers SavingsLoansPrincipal, interestTaxesMoney in/out Political influence Banks, financial markets

Numerous economic components missing. Numerous interrelationships missing. Just meant to give you a glimpse of how we view. Other economies work differently, China’s state capitalism, for instance. Each economy interacts with others globally. About 200 economies at the party. Economists looking for theory, efficiency, solutions, Nobels. Journalists look for simplified explanations, stories, Pulitzers.