"The Embarrassing Economic Story" is a new challenge in the "Embarrassing Series," a series that covers all the knowledge in the world that you will study for the first time in your life.
Maintaining the easy-to-read structure that was well-received in the previous "Difficult" series, it now discusses economics, which has become essential knowledge for all citizens.

The first volume, the basic edition, perfectly fits the subtitle, "Preparatory Exercises to Get Familiar with the Economy," as it introduces readers to the world of economics in the easiest and quickest way possible.
Rather than simply listing concepts, we've made it easy to learn the core concepts that form the basis of economics through storytelling.
This book, which contains knowledge ranging from opportunity cost and the law of supply and demand, which you've likely heard of somewhere, to stocks, bonds, exchange rates, and prices, will provide you with an opportunity to build a solid foundation in economics.

Money is a kind of promise that is valid only in a certain time and place.
They agreed to exchange this piece of paper, decorated with various patterns and pictures, for various goods.
Of course, I didn't ask for consent from each and every one of them.
However, as members of society, we live in tacit agreement with this promise.
So where that promise doesn't work, money is just a piece of paper.
---From "Part 1, Chapter 1, 'The World of the Economy that Overcame Desire and Evolved'"

Taking a taxi instead of public transportation, even if it means spending a little more money, or choosing leisure activities without collecting money, may be seen as quite extravagant behavior in the eyes of someone with a different economic situation.
But as I said, each of these judgments has its own rationality from its own standpoint.
If you understand economic thinking, rather than hastily criticizing someone else's economic choices, you can think about their economic circumstances and criteria for judgment.
---From "Part 1, Chapter 2, 'Everyone is Born with a Balance'"

At this point, I should explain what market capitalization is.
Market capitalization refers to the 'market value' that shows how much a company is currently worth.
When you go to a sushi restaurant and look at the menu, you can often see the prices of seafood listed as market prices.
Because the price of seafood fluctuates sensitively depending on the daily catch.
Market capitalization is the same concept.
Market capitalization is calculated by multiplying the trading price per share by the total number of shares issued, but since the trading price per share changes constantly, the market capitalization also continues to change.
---From "Part 2, Chapter 1, 'On Stocks, the Flower of Capitalism'"

The same goes for stocks.
Just as primitive people put present food in pottery to hope for future food, modern people can be seen as hoping for future returns through present investments through stocks.
There are many cases where the essence of stocks is misunderstood because of speculation aimed at short-term price fluctuations or making a fortune overnight, but the term "stocks" itself already contains the context of preparing for the future.
---From "Part 2, Chapter 1, 'On Stocks, the Flower of Capitalism'"

When I introduced the three main players in the modern economy, I explained that the government, like households and businesses, also incurs debt. The bonds issued by a government when it incurs debt are called government bonds.
Bonds issued by companies, such as Zhongshan Bakery, are called corporate bonds.
The general public rarely buys and sells government bonds, so they may not be familiar with them.
Almost every government in the world finances part of its annual budget by issuing government bonds.
After the budget is spent, taxes are collected and the national debt is repaid with those taxes.
Naturally, just like individuals and companies, when debt increases to a level that countries cannot afford and their credit ratings deteriorate, it becomes difficult for them to issue government bonds.
---From "Part 2, Chapter 2, 'The World of Economy, Debt and Interest'"

Besides setting the benchmark interest rate, one of the central bank's important roles is to create money.
But creating money doesn't just mean printing bills or coins; it means lending them out.
The central bank can create and lend money even if it doesn't have it.
If the central bank simply lends money to commercial banks, money that never existed before will suddenly appear in the world.
Of course, this is a process that is not directly handed over a lump sum of money, but rather recorded only on a computer.
Then, commercial banks re-loan the money to ordinary businesses and households, thereby circulating the money throughout the world.
---From "Part 2, Chapter 3, 'Exchange Rates and Prices That Change Your Money'"

What's interesting is that our country suffered relatively less damage during the 2008 global financial crisis.
While we certainly faced challenges, we were able to avoid a severe recession like Europe's. This was partly because, after the IMF foreign exchange crisis, both the government and businesses were wary of fiscal deficits and maintained ample foreign exchange reserves.
Because I went through a trial once, I was able to build up my stamina to prepare for a crisis.
---From "Part 3, Chapter 1, 'Learning from Collapse and Disaster'"

Economics is a discipline essential to understanding the complex world we live in, but it cannot explain everything.
However, I am sometimes concerned that there are quite a few books on the market that are written with an economic omnipotent attitude, trying to interpret even social issues that are not directly related to the economy through economics.
While it's clear that economics is a crucial part of human life, we must not overlook the fact that the world holds many values ​​beyond those emphasized by economics.
Freedom, equality, justice… these values ​​can clash with economic values, and in such cases, we cannot prioritize economic values ​​alone.

---From Part 3, Chapter 3, 'Again, at the Starting Point of the Economy'