How the Economic Machine Works

          Refer to the following video from minute 14 to 31 (How the Economic Machine Works by Ray Dalio) to answer the following questions: https://www.youtube.com/watch?v=PHeObXAIukO 1- Why interest rate works in recession but does not work in deleveraging? 2- When the central banks print money, what can they buy? How about the central governments? 3- What is a beautiful deleveraging? 4- What are the three rules of thumb that you would take away from the video?    

Sample Solution