How important is the work done by people who work in finance?

In summary: On the other hand, more than a few economists have argued that many of the recent financial innovations (complex derivatives, etc.) essentially constitute a form of rent-seeking (a debatable proposition, but probably at least partly true).In summary, the GRANDs asked if people with finance degrees are important to society, and according to the summary, all of their jobs are useful to society in one way or another.
  • #36
PeroK said:
Rather that than an economist writing a book about neurology.
I hope this is not a joke.
 
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  • #37
Grands said:
Suggest me some title then.
I'm not an economist and don't have a good recommendation for a starting book. Hopefully others here will.

I certainly agree with bwv ... you do NOT want to start out with theoretical economics. That stuff will make your head hurt.
 
  • #38
russ_watters said:
Over the long term, almost everyone ends up with more money.

And we hope the ability to buy more stuff too.
 
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  • #39
I think I've said it before to OP, maybe not:

start reading The Economist on a weekly basis. If he reads the "Business" section and especially the "Finance and Economics" section he will gradually pickup an awful lot. They even pioneered light-hearted but smart things like "The Big-Mac Index" to look at relative currency costs. It's not as dry or as technical as a textbook, though will walk-through textbook concepts. There are some other pretty good sections too.
 
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  • #40
StoneTemplePython said:
I think I've said it before to OP, maybe not:

start reading The Economist on a weekly basis. If he reads the "Business" section and especially the "Finance and Economics" section he will gradually pickup an awful lot. They even pioneered light-hearted but smart things like "The Big-Mac Index" to look at relative currency costs. It's not as dry or as technical as a textbook, though will walk-through textbook concepts. There are some other pretty good sections too.
I agree. I read The Economist regularly.
 
  • #41
StoneTemplePython said:
The Big-Mac Index"
I heard about it and I heard what it is.
Anyway, my intent was just to understand what a person that work in Finance do.

I know that who study economist care about management of a company, who study business try to organize how that company should sell a products, who work in a bank have to be careful to approve loan to the "right" people, but I have no idea about Finance.
 
  • #42
Grands said:
So how is possible that every nation have a public debt and no nation have a public credit?

It's not. It's also a very ill-posed question - it asks us to explain why something is true, when it is not.

If you mean "any debt at all", pretty much all organizations have some debt. If you order something on a Tuesday and pay the invoice on Friday, that's debt. But if that's what you mean, pretty much all organizations also have some credit. If you pay for something on Tuesday and they don't ship it to Friday, you have a credit. So the premise of your question is untrue.

If you mean "net debt", it's also untrue. Denmark, Germany, Japan. All have a net credit. So again the premise of your question is untrue.
 
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  • #43
Japan has the largest debt level (relative to its GDP) of any developed country, think what you are referring to is its positive trade balance
 
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  • #44
Vanadium 50 said:
It's not. It's also a very ill-posed question - it asks us to explain why something is true, when it is not.

If you mean "any debt at all", pretty much all organizations have some debt. If you order something on a Tuesday and pay the invoice on Friday, that's debt. But if that's what you mean, pretty much all organizations also have some credit. If you pay for something on Tuesday and they don't ship it to Friday, you have a credit. So the premise of your question is untrue.

If you mean "net debt", it's also untrue. Denmark, Germany, Japan. All have a net credit. So again the premise of your question is untrue.
Thanks for your answers.
So basically the public debt is just something that State try to pay everyday and can't pay the entirely sum in one day?
 
  • #45
BWV said:
Japan has the largest debt level (relative to its GDP)

But that debt is largely held domestically. Which exposes yet a third way of looking at Grands' ill-posed question: "why do governments borrow from their citizens instead of lend to them?" The answer is that while they do both to some degree, they're really not banks.
 
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  • #46
Vanadium 50 said:
But that debt is largely held domestically. Which exposes yet a third way of looking at Grands' ill-posed question: "why do governments borrow from their citizens instead of lend to them?" The answer is that while they do both to some degree, they're really not banks.
My question was about what people that study finance is doing, which service they provide for people.
Then russ started to speak about public debt, and that the sum of all debts and credits is 0, and I asked how this is possible considering that all the countries have a debt.
 
  • #47
Every debt is someone else’s asset - for every borrower there must be a lender. It is just an accounting identity.
 
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  • #48
Grands said:
Thanks for your answers.
So basically the public debt is just something that State try to pay everyday and can't pay the entirely sum in one day?

States generally never pay off their debt, they keep rolling it over and rely on a combination of economic growth and inflation to reduce its value relative to the economy.
 
  • #49
BWV said:
States generally never pay off their debt, they keep rolling it over and rely on a combination of economic growth and inflation to reduce its value relative to the economy.
Ok, and who give the money to the countries ?
 
  • #50
States borrow issuing bonds which are purchased by savers
 
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  • #51
BWV said:
States borrow issuing bonds which are purchased by savers
Yes and savers are common people?
I can buy by myself a bond from the State?
 
  • #52
Yes, or one from another country
 
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  • #53
BWV said:
Yes, or one from another country
So basically the State create the money and they it have problem with taking it back?
 
  • #54
No, just think of that as two separate issues. Back when money was gold and silver, uncreated by the state, states still borrowed and went into debt.
 
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  • #55
BWV said:
No, just think of that as two separate issues. Back when money was gold and silver, uncreated by the state, states still borrowed and went into debt.
Yes, I read about this, and about the fact that gold and silver became banknotes little by little, thanks to the bank, but is not clear how the State decide how much money to put into circulation, if was the banks that had the money in the past.
 
<h2>1. How does the work done by people in finance impact the economy?</h2><p>The work done by people in finance plays a crucial role in the economy. These professionals manage and allocate financial resources, which helps to drive economic growth and stability. They also make important decisions that affect interest rates, investment opportunities, and the overall flow of money in the economy.</p><h2>2. What are the main responsibilities of people who work in finance?</h2><p>The responsibilities of people who work in finance vary depending on their specific roles, but some common tasks include managing financial records, analyzing data, making investment decisions, and providing financial advice to individuals and organizations. They also play a key role in managing risk and ensuring compliance with financial regulations.</p><h2>3. How does the work done by people in finance impact businesses?</h2><p>The work done by people in finance has a significant impact on businesses. They help companies secure funding, manage cash flow, and make strategic financial decisions that can impact the success and growth of the business. They also provide valuable insights and analysis that can help businesses make informed decisions and improve their financial performance.</p><h2>4. What skills are important for people who work in finance?</h2><p>People who work in finance need a combination of technical and soft skills. Technical skills such as financial analysis, data management, and knowledge of financial regulations are essential. Soft skills such as communication, problem-solving, and critical thinking are also important for success in this field. Additionally, strong attention to detail and the ability to work under pressure are crucial for handling complex financial transactions.</p><h2>5. How does the work done by people in finance impact individuals?</h2><p>The work done by people in finance can have a direct impact on individuals' financial well-being. These professionals help individuals manage their money, make investment decisions, and plan for their financial future. They also play a role in providing access to financial services and products, such as loans and credit cards, which can impact individuals' ability to achieve their financial goals.</p>

1. How does the work done by people in finance impact the economy?

The work done by people in finance plays a crucial role in the economy. These professionals manage and allocate financial resources, which helps to drive economic growth and stability. They also make important decisions that affect interest rates, investment opportunities, and the overall flow of money in the economy.

2. What are the main responsibilities of people who work in finance?

The responsibilities of people who work in finance vary depending on their specific roles, but some common tasks include managing financial records, analyzing data, making investment decisions, and providing financial advice to individuals and organizations. They also play a key role in managing risk and ensuring compliance with financial regulations.

3. How does the work done by people in finance impact businesses?

The work done by people in finance has a significant impact on businesses. They help companies secure funding, manage cash flow, and make strategic financial decisions that can impact the success and growth of the business. They also provide valuable insights and analysis that can help businesses make informed decisions and improve their financial performance.

4. What skills are important for people who work in finance?

People who work in finance need a combination of technical and soft skills. Technical skills such as financial analysis, data management, and knowledge of financial regulations are essential. Soft skills such as communication, problem-solving, and critical thinking are also important for success in this field. Additionally, strong attention to detail and the ability to work under pressure are crucial for handling complex financial transactions.

5. How does the work done by people in finance impact individuals?

The work done by people in finance can have a direct impact on individuals' financial well-being. These professionals help individuals manage their money, make investment decisions, and plan for their financial future. They also play a role in providing access to financial services and products, such as loans and credit cards, which can impact individuals' ability to achieve their financial goals.

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