Money - Another Case
of what goes around comes around
Economists have come
up with some pretty complicated and elaborate explanations and
theories about how economies work. We're not economists,
and we make no claim to such knowledge, BUT we do want to talk a
little about the role of $$$. So let's start with a story,
one you may have heard before. It's rather long, but it
makes a very important point.
What this is all about is the
role of money and how it flows in an economy. The amount of money in
circulation is important, but the speed of the circulation is
also very important. The speed makes a limited amount of
money available to more people, and it means that the money
eventually can get back to the person that spent it. What
goes around comes around, and the faster that happens, the better.
To
read about how cash flow affects the economy
To
read about the affect of money supply on the economy
To
read about how cash flow affects the economy