What does real economy mean?
Definitions for real economy
re·al econ·o·my
This dictionary definitions page includes all the possible meanings, example usage and translations of the word real economy.
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Wikipedia
Real economy
The real economy concerns the production, purchase and flow of goods and services (like oil, bread and labour) within an economy. It is contrasted with the financial economy, which concerns the aspects of the economy that deal purely in transactions of fiat money and other financial assets, which represent ownership or claims to ownership of real sector goods and services.In the real economy, spendings are considered to be "real" as money is used to effect non-notional transactions, for example wages paid to employees to enact labour, bills paid for provision of fuel, or food purchased for consumption. The transaction includes the deliverance of something other than money or a financial asset. In this way, the real economy is focused on the activities that allow human beings to directly satisfy their needs and desires, apart from any speculative considerations. Economists became increasingly interested in the real economy (and its interaction with the financial economy) in the late 20th century as a result of increased global financialization, described by Krippner as "a pattern of accumulation in which profits accrue primarily through financial channels rather than through trade and commodity production".The real sector is sensitive to the effect liquidity has on asset prices, for example if the market is saturated and asset prices collapse. In the real sector this uncertainty can mean a slowdown in aggregate demand (and in the monetary sector, an increase in the demand for money).
Numerology
Chaldean Numerology
The numerical value of real economy in Chaldean Numerology is: 7
Pythagorean Numerology
The numerical value of real economy in Pythagorean Numerology is: 9
Examples of real economy in a Sentence
It has not been a big mover of our business or what you can see in the real economy.
The intensity of the move exceeded market expectations, this move will help support the real economy and stabilize financial markets. We've seen rising debt defaults and funding strains on small firms, as well as a sharp adjustment in the capital market.
There’s no clear driver that I can see that is going to ignite growth in the real economy. We continue to limp along.
Our view for this year has been that asset markets would likely underperform the real economy as peaking growth momentum, tighter financial conditions, higher inflation and more volatility would act as a drag on valuations even as EPS trends remain solid.
The financial sector seems to be identifying more risks than the real economy, this raises the question: who is managing these risks?
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"real economy." Definitions.net. STANDS4 LLC, 2024. Web. 25 Apr. 2024. <https://www.definitions.net/definition/real+economy>.
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