INVISIBLE HAND
A term coined by Adam Smith, a Scottish moral philosopher and pioneer of political economy. His 1776 book, An Inquiry into the Nature and Causes of the Wealth of Nations, invisible hand refers to the natural phenomenon that guides free market capitalism via competition for insufficient resources.
According to Smith, every participant in a free market will attempt to maximize self-interest. Market participants’ interaction, resulting to exchanging goods and services, allows each participant to become better than merely producing for himself/herself. He added in a free market, regulation is not needed to make sure the mutually beneficial exchange of goods and services occur. The invisible hand would guide individuals to trade in the best mutually beneficial manner.
POPULAR TERMS
CFP Franc - XPF
IRS Publication 575
Homeowners Association Fee - HOA Fee
Deep-Discount Bond
Non-Spouse Beneficiary Rollover
POPULAR ARTICLE
SEE FOREX TUTORIAL
The Concepts of Economics: Scarcity
Students, How Much Can You Afford to Borrow?
Retirement Planning: Allocating Money for Retirement
Buying a Home: Getting Pre-Approved for a Mortgage
Student Loans: Private Loans
ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 06:30 | Tertiary Industry Index | Apr | |
| 08:00 | Wholesale Price Index | May | |
| 08:30 | Producer & Import Prices | May | |
| 09:00 | SECO Consumer Confidence | May | |
| 10:00 | Trade Balance | Apr | |
| 11:00 | Current Account (sa) | Apr | |
| 11:00 | Industrial Production | Apr | |
| 14:15 | Housing Starts | May | |
| 14:30 | NY Fed Empire State manufacturing index | Jun |
