The economy is a complex system based on three main components:
- Products and services,
- Consumers providing demand for them,
- The money supply contributing to the maintenance of this turnover
The healthy functioning of the economy requires maintaining a balance between these elements. As a rule, balance is achieved by regulating the amount of products and money supply, while the human resource remains at a relatively stable level.
A situation in which the quantity of goods is less than the money supply leads to inflation. Otherwise, when there are more goods than money, deflation occurs. Both phenomena carry risks and negative consequences for the economy.
The key point is that all these processes are directly related to the human factor, which is responsible for the consumption of goods using the same money supply.
Today, the main task of the global economy is to combat inflation.
In conditions of an excess of money supply and unwillingness of the system to take over the consequences of this phenomenon, which may well lead to its collapse, pushes the latter to global destabilization and increased military tension at the global level.
If tight monetary policy does not produce the desired results, there is a high probability of solving problems with excessively increased consumer activity by reducing the very number of human resources.
There is something in this. Today's reality of harsh life.
