Money + Credit = Total Spending. Total Spending / Quantity Sold = Prices.
Money is the medium of exchange. It settles transactions immediately. If you pay $5 for a coffee, the transaction is done. how the economic machine works pdf
A central theme in the is the concept of cycles. Dalio explains that human nature, combined with the credit system, creates cycles. Money + Credit = Total Spending
Dalio identifies three primary forces that interact to create economic movements. Productivity Growth combined with the credit system