1. BASIC CONCEPTS

The first we have to do to deal an issue, is knowing about it. In order to talk about economics, we'll say you that we know about economics, why? We want to make you to think that you know economics because we want you to think that you know more economics than the granny that is just in front of you, here like me, on the job office line.

First of all, the first boring lesson in which you are given all the macro basic indicators to keep deceiving you in the future.

Do we know what is the Economy? We're not releasing boring deffinitions like "administration of scarce resources to maximize the welfare of the societ... BLA BLA BLA". Everyone knows what is surrounding us, just call the things somehow:


GDP(PIB for spanish speakers): only as an introduction (we will develope this concept widely in our video serial), GDP is everything, AKA as wealth, output, product, we use to refer it as wealth measurement (in our simple economic model). If you read something else like Gross Added Value... please leave this "Economics for Dummies"

INFLATION RATE (measured by the consumer price index): please if you are saying that don't know what is this about... click here. If you feel really interested in this concept, slither into your nearest library and grab a Basic Statistics handbook. If we continue married, we'll make clear a lot of interesting stuffs about CPI.

Remember it (is the first time I say it? So, LEARN IT): you are doing it for fun and just in your leissure, you want to learn some useful things and I/we am/are not going to complain about stupid stuffs like names or specificities. We are all actually interested in a life full of happines, smileys, drugs and money. Hence, if you don't feel like doing it: GO AWAY

INTEREST RATE: the key developing interest rate is that the money loose value over the time. Explanation? Ask to your grandpa how many euros (pounds/dollar/renmimbies) did he spend inviting your grandma (or your neighbor's grandma, who knows) to the cinema, buying some ices, a magazine... Let's say 10 cent of euro (0.1€)
How much money would be those 10 cents right now? Think... Probably 20€, it means his money has depreciated around 99%. In your grandpa's bank should give him an interest rate of 99,5% in order to maintain his purchase power. We will make it easier, don't worry, remember this is just an introduction.

UNEMPLOYMENT RATE: this is Spain... should I tell you what the unemployement rate is? In a not-far-away future we will deal about why employment (Sir, if you have a work for me, I'm a high skilled team worker, flexible, proactivity attitude, absolutely availability, car-owner, no matter facing the audience... I'll attach you my CV!!!!)