People are often bewildered when they are told how the economic dynamics are affecting them in one way or another. And I don’t blame them too. It is because as an Economics student, I have a hard time understanding or digesting what links to what too.

With a stroke of luck, I chanced upon this clear animated video which breaks down the difficult question of “How does the economy really work?”.

Created by Ray Dalio through his knowledge gained over the course of his career, the video breaks down economic concepts like credit, deficits and interest rates, allowing viewers to learn the basic driving forces behind the economy, how economic policies work and why economic cycles occur.

Watching this video will greatly increase your understanding of the economy and may aid you in your investment decisions too. Hope you will enjoy the video here!