The heart of economics: how to move money around
At 11Onze we want people to become financially empowered. You can start doing so with the series El Diner.
El Diner is an animated series that you can find in La Plaça, with the aim of explaining the world of economics in an entertaining and simple way. The series consists of nine chapters, with lessons such as “The history of money”, “The creation of money” and “The concentration of wealth”. At the end of each chapter, there is a questionnaire to check if we have understood all the concepts. But what is the definition of money and of the economy?
Money is the heart of our economy: it is the tool that enables us to exchange goods (the food we buy, a house, a computer, or a bicycle) and services (the time we pay for the time someone has spent doing something: a doctor, a lawyer, a schoolteacher, a mechanic…) by means of a currency.
This currency usually takes the form of a material central currency (in the form of banknotes and coins, the money we can touch and carry in our wallets), also known as manual, liquid, or cash currency. These coins are manufactured at the European Central Bank (ECB), as well as enabling the economy to function.
The other currency with which we can pay for goods and services is scriptural or secondary currency, i.e. our current account numbers, which do not exist physically and only exist within our bank’s computerised accounting system. This money is managed by private commercial banks, those that work directly with the public and that we find in our city or in our neighbourhood. They are the ones that distribute the coins and banknotes created by the ECB.
Satisfying supply and demand
If we follow the lesson “Learn to evaluate the economy”, in the learning section of La Plaça, we will also understand why the economy is a system of distribution and management of limited resources to satisfy people’s demands.
But the term economy goes beyond that, as we all contribute to making it possible. Our actions are reflected in what we consume, the hours we work, the goods we own, the money we can save. The sum of the actions taken individually by all citizens is the fate of the global economy. In other words, the economy is the result of our choices.
We hope that this short introduction to the El Diner series, and the summary of its concepts, has made you want to learn about the economy and the world of finance. As they say: “In life, sometimes you win, sometimes you learn”.
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