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Economy and Finance

 At times economy and finance are seen as the same entity. But feel, Finance is a more technical and measurable entity that is tangible like with clear definitions and accountability for cash flows, liquidity, balance sheet etc.

 But whereas the economy is more of a psychology-related phenomenon driven by sentiment though it was given some form of statistics and analytics in the 20th century to bring about measurement on it like the GDP, inflation and other micros etc. Still, the behavioural branch of economics which seems to be relevant clearly portrays it as an intangible movement driven by some external factors like the macros etc. Certain indicators from the economy models can be used as a trigger to nudge some moves, but the results need not be accurate as in the case of financial forecasts and measurements.

 In conclusion, it is the movement of an intangible economy that determines the financial results.

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