You’ve been avoiding them, haven’t you? Those terms such as liquidity make you feel a little edgy! And those ratios?
Well: numbers are power, numbers help you win your case. Let’s get good with numbers, quickly and easily.
Economics is the science that studies the production, distribution and consumption of goods and services. Adam Smith was a key player in the development of modern economics when he wrote an amazing book called The Wealth of Nations. In this he put a strong case for the support of free markets, and argued that they would ultimately regulate themselves.
Then there are economic cycles. Here two useful terms are:
Inflation. This is the pressure on prices to go up, the consequence being that you get ...