What is economic dynamics?

Economic Dynamics is a term used to indicate the act of monitoring the economic system in order to analyze it on any type of changes that occurred over a period of time. In order to observe economic dynamics, there must be a competent way, there must be a reference scope that would include the situation at some point in relation to the situation later during the observation. Another way to describe economic dynamics would be to say that it is an analysis of a specific economic system with the only goal to find out changes in macroeconomic and microeconomic factors within the time framework that occurs.

One of the factors that can be observed during the observation of economic dynamics would be the behavior of the business cycle in this economy during the period of observation. The onor trade cycle refers to the definition of economic activities to the time units with the aim of comparingAt the behavior of each business cycle, which provides the economist and other parties to the economy. Assuming that the economy does not reach the expected scale in consecutive trade cycles, this could be a sign that the economy is not doing well, and it can also be the forerunner of undesirable economic situations such as inflation and subsequent depression. Following business cycles with their different results is one of the factors contained in the field of economic dynamics.

Another factor that is studied during the analysis of economic dynamics is the way the market in this economy behaves. This type of analysis would necessarily include a study of activities in the stock market in this economy and other factors, such as increasing or reducing interest rates by the main bank in this economy. When Hjak has been the bank to be the possibility of a decline in an economy that may be due to certain negative factors, including the rate of demand that far surpassed the available rateoffers, the bank may incite certain measures to bring a balance between demand in relation to the supply. Such measures may include an increase in the interest rate of funding and included in factors studied as part of economic dynamics.