What am I seeing when I am seeing all the variables and factors happening in the macro pictures of the economies of each country when being where we are as humans with sight and reasoning?
So, we are talking about the product market, and the money market, and we are just talking about an international and national economies of prices and of exchange rates when we are here, and we are not sure about what we demand of different products and money is related to what is being supplied of different things, and in addition we have the loaning markets with loans and saving being presented when we are in the life as we are.
So, the product markets, they are just about the demand and the supply, as any economist can tell about the markets when we are at home and abroad while we are here. So, the product markets are about prices and quantities, we are demanding for little when the price is high, and there are more to be bought when the prices are low, and that is the demand curve for any product we find in any conceivable markets when we are here and there. And we also find the supply curve here, with more being offered when the prices are high since we can earn more money in such cases, and there is a lower price when we can offer minor quantities of the product in question to the market. And the products can be mentioned to infinity, and the examples are suits, footballs, tennis equipment, soda, wine and all the products we can find with and without any brands when we are here and there.
So, we are finding different kinds of concepts being used in the product markets, and also in the money markets being here. But what is the logic, and the ways that things are being offered in the markets? Well, we know that the price of money is the interest rate, the and quantity of being demanded and offered of any national currency is the way we are seeing what is being bought and sold in the markets of exchanges when we are here. And the higher the interest rate, the less is being bought in the money market, and the more is being offered. And the lower the interest rate, the more the buyers are buying of different money types, and the less is offered in the markets of the supply, and hence the demand curve in the money market is in the same way as we find it in the product markets, and the same logic as a rising supply curve in the money market, is also true for the product market!
And these things are what we are seeing in the product market and in the money market, and in addition there can be positive or negative changes in the curves, and this is due to what is happening at home and abroad with changes in variables or with changes in factors that we are seeing and perceiving while we are here. And the banking system and the banks are offered the different kinds of the currencies with higher courses of the SALES rather the BUYING quantities, and the logic is that we should earn money on something in domestic and in interational markets, and therefore there is more to be paid than the equilibrium meaning that we should earn money on our efforts being done out there and here. And the logic is the same in the domestic markets, as well in the intternational markets for any country.
So, the we have different kinds of markets, and there should not be mess in the things we are treated when saying and claiming things how they are happening while being here as we are. And the foreign exchange markets are just about the different curves of demand and the supply, and in Europe we are measuring transactions in euro, and in the whole world outside Europe, we are measuring transactions in US Dollar or in USD, and any economy must have these markets, and the products are the most important in marketing and in the exchange systems of tangible and intangible assets while we are here, and we are offering articles and services while we are here, and the consumers and potential customers are not engaged with what they are calling the products, but the main thing is to perceive and to enjoy and to experience the products just as it is coming and can be when we are here. And the demand curve in USD is falling with the price of dollar, meaning that high exchange rate will imply little to be demanded, and low course to be more to be demanded. And the higher the price of USD, the more supply it is, and the lower the price of USD, the less the supply really is about, and all these markets are about the demand and the supply, and this is why the earlier MIT professor Paul Samuelson told that markets that even a parrot can be an economist, and it is just to tell it about the demand and the supply that is going on, and the products really come from raw markets, and we are having certain and uncertain waves in the exchange rates when we are here, and we cannot always be sure about anything to happen.
And there are really four types of markets in any economy in the world, and these are raw markets, product markets, money markets and exchange markets, and maybe we should introduce a model for taking care of all these markets, or maybe we should make analysis in each of these markets alone, with the demand and the supply coming with different shapes due to the patterns of the preferences to the consumers, and due to how the firms are earning money when being in the markets where they can earn enough money to make the employer and the employees to be there they are when being here and there. And we have an IS-LM model, meaning we are within and without at the same time the equilibrium in the product markets and the money markets. But this can just be ignored, and any serious and talented economist knows what is going on when there are transactions where we are from day to day, and from second to the next second.
And there are positive and/or negative shift in the demand curve and the supply curve, in addition to follow a curve with its empirical points coming along the curve. And we also have risk management in some situations, meaning that all things that are affecting the situations in these four markets as the raw market, the product market, the money market and the exchange rate market can come to the market, meaning a new or an established situation just as we know and do not know, and hence we should consider the situations closely and thoroughly and what is happening just as the things are when they are coming, and you do you and I do I!
And there can also be general or specific versions of the demand curve and the supply curve, and hence we are never sure about what is happening until we know what is happening and why and how things are as they are. Good luck with market philosophy and market economics! Good luck with Micro Economics and Macro Economics. Micro is for the individual or the households, and Macro is for larger groups and the nation and the nations.
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