Monetary System … International Trade

International trade is a barter system! We pay for our imports, not with money, but, with the goods we export. While we might perceive that we have paid for imports with money, this is an illusion … We can illustrate this best by considering an export. Assume we export some goods to the USA, the …

Economics … Monetary System and GDP explained

To understand economic issues, we need some understanding of GDP and the monetary system. I have constructed a few simple tables based on a primitive economy that should help to show what GDP actually is, and demonstrate how the monetary system works … you might even be able to conclude that “there is no money!” …