Economics and Finance: A Web of Lies
ECO 101 - Any introductory course to economics describes the theory of supply and demand; the market system; the concept of inflation, deflation, stagnation; monetary policy and central banks; and more. FIN 301 - Finance, at the intermediate to advance level in the pursuit of any business degree, will have you learn the concept of the time value of money (TVM). The principle behind the " time value of money " is simply "a dollar today is worth more than a dollar tomorrow". However, the definition of the TVM becomes convoluted as follows: Investopedia defines the TVM as the idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received. Try reconciling the basic principles of economics in which a fair and equal market determines a...