I worked as an economist at a securities firm's research center and a private economic research institute for 25 years.
Then, starting seven years ago, I began extending my role as an economist with students at Sogang University's Graduate School of Economics.
I wanted to connect students who primarily study economic theory with the real world of the economy, so I created a course called "Macroeconomic Indicator Analysis," which I've been teaching for 14 consecutive semesters.
This course provides students with an overview of how key economic indicators published by the National Statistical Office, the Bank of Korea, and other institutions are compiled, how they are connected to economic theory, and how to use these indicators to diagnose the current economic situation and forecast the future economy.
Additionally, we share knowledge in the same way as financial professionals in the training course called ‘Financial Market Analysis’ at the Korea Financial Training Institute.
This book is based on the contents of these lectures.
For this reason, I believe that it has sufficient practical necessity and utility, no less than any other book.
---From the "Preface"

Economy refers to the overall level of activity of the national economy.
Simply put, it indicates how actively the economy is moving.
The phrase 'good economy' means that the level of activity in production and consumption is high.
In other words, they produce a lot and consume a lot.
Naturally, the movement of money also becomes more active.
Conversely, a bad economy means that production and consumption are shrinking and the flow of money is blocked.
Let's explain the game using a student analogy.
Saying that the economy is doing well is like saying that a student is working hard at the activity called 'studying'.
You can only know how good or bad a student's grades are by looking at his or her report card.
However, you can tell whether you are studying hard or not, and people around you can also feel it.
The same goes for Gyeonggi-do.
You can feel firsthand whether economic activity is active or not.
Just as a student who studies hard is more likely to get good grades, when the economy is doing well, the economy itself is more likely to do well.
---From "Chapter 1: What is a Business Cycle and How Does It Work: Business Cycle and Factors of Business Fluctuations"

The economy is formed through the specific actions and organic interactions of individuals and groups participating in economic activities.
Individuals or groups that engage in economic activities are called 'economic entities', and can be broadly divided into households, businesses, governments, and foreign countries.
Among these, the role of households, which are primarily responsible for consumption, and companies, which are primarily responsible for production, is significant.
Therefore, examining the current situation of households and businesses is an effective tool for understanding the state of the economy.
A useful indicator is industrial activity trends.
At the end of every month, Statistics Korea announces industrial activity trends for the previous month.
This shows how much of the goods our country's companies produced and sold (shipments) and how much is left (inventory).
It also provides statistics on household consumption and corporate investment trends.
And by creating a comprehensive economic index, we can forecast not only the current but also the future economy.
---From "Chapter 2 Current Economic Situation of Households and Businesses: Industrial Activity Trends"

The Korean economy is highly dependent on trade.
In other words, since exports and imports have a significant impact on the economy, export and import trends are very important indicators for understanding the Korean economy.
To understand export and import trends, you can refer to the “Monthly Export and Import Trends” published monthly by the Ministry of Trade, Industry and Energy.
---From "Chapter 4: Navigation in the Trade Market: Import and Export Trends"

We live in constant conflict with prices in our daily lives.
In order to carry out economic activities, we have to buy something, and prices determine the price of the products and services we buy.
We often hear stories in the media about households struggling financially due to rising college tuition, transportation fares like bus and subway fares, and public utility bills like gas.
Additionally, interviews with housewives who are afraid to go grocery shopping because of rising food prices are a regular feature on TV news.
But prices don't just affect households.
Companies cannot help but be sensitive to the prices of raw materials they purchase for production.
And rising prices are also a direct cause of rising labor costs.
In this way, prices affect all sectors of the national economy, including household consumption and corporate production.
---From "Chapter 7: The Weather Vane of Household and Corporate Economy: Prices"

People cannot hold only as much money as they need.
Sometimes you have money to spare and sometimes you don't have enough.
If you have any money left over, deposit it in the bank or lend it to someone else.
When you're short on money, you may borrow from others.
A person who borrows money must pay a fee for borrowing the money over a certain period of time, and this fee is called 'interest'.
The proportion of this interest in the principal, that is, the ratio of interest to principal, is called the 'interest rate' or 'interest rate'.
In other words, the interest rate is the ratio of the interest amount to the principal that the demander of funds pays to the supplier in return for borrowing funds in the financial market.
---From "Chapter 9: The Price of Passing Current Consumption to the Future: Interest Rates"

Exchange rates, like other commodities, are determined by supply and demand in the foreign exchange market.
If our export companies do well in exports and earn a lot of dollars and supply them to the foreign exchange market, the value of the dollar will fall and the value of the won will rise.
The won/dollar exchange rate is falling.
Conversely, if our importers buy dollars in the foreign exchange market to import goods or services, the demand for dollars will increase and the exchange rate will rise.
Therefore, the balance of payments has the most important influence on exchange rate determination.
If the balance of payments is in surplus, it means that the supply of dollars in our foreign exchange market is greater than the demand, so the value of the dollar falls and the value of the won rises relatively.

---From "Chapter 11 Demand and Supply for Foreign Currency: Exchange Rates"