Velocity Wanted: Effective Ways to Stability 03
By definition and as implied by Adam Smith, Economy flows (T -1 ) goods and services from production (T -1 ) to consumption (T -1 ). In between is commerce, or “trade after specialization.” By design or by chance, la main invisible of the market has two moving hands (T -1 ), that is, the “demanding” and the “supplying.” On the sidewalk of the economy, Finance balances (T 0 ), or puts in equilibrium, between two petrified hands (T 0 ); the credit side (liabilities, or “sold assets”, T 0 ) and the debit (assets, or “bought assets,” T 0 ). Owing to conventional wisdom, incidentally, we are never crying (T -1 ) over the split (T 0 ) milk. While history is stuck (T 0 ), the economy keeps flowing with efficiency (M ∙ U ∙ T -1 by definition). For instance, “ labor productivity ” is defined to be the utile output (M ∙ U), or “good” as s...