• Steve Coker, CFP

How the Economic Machine Works

Updated: Feb 21


As the virus recedes, investors are getting back to the nuts and bolts of the economy – a welcome change compared with tracking covid cases and lockdown measures. This week I would like to recommend one of the best 30 minute overviews of the economy that I have seen: ‘How the Economic Machine Works, by Ray Dalio. In this simple animated video, Dalio explains how the economic machine works, how the Federal Reserve stimulates and slows the economy, and why interest rates are important.


As we move into the coming months and years, the actions by the Federal Reserve, and the direction of interest rates will be very important to investors. It is a good time to refresh how the economic machine works so we can understand future market movements. I hope you enjoy!


You can watch the video here