When we analyze the economy, we look at it in terms of the value of money...

When we analyze the economy, we look at it in terms of the value of money...
Because the value of money itself is not constant
When you look at the economy in terms of money, it's easy to get inaccurate interpretations
That's why GDP, etc. are also calculated by correcting inflation

I thought about the meaning of the economic phenomenon, excluding money

economic growth
Spending more and investing more in a given period than before
In other words, 1 apple last year, 2 apples this year--> More consumption
Last year, we produced a machine that makes 10 bungeo-ppang per hour
This year, it produced a machine that makes 100 bungeo-ppang per hour --> more investment

in terms of money
The price of apples, which used to be 100 won per apple, has dropped in half
You can say that you spent 100 won worth of apples last year and 100 won worth of apples this year
But regardless of this numerical information, the economy has grown

the accumulation of wealth
1) an increase in capital
1 machine for making 10 bungeo-ppang --> 2 machines
Or
1 machine for making 10 bungeo-ppang --> 1 machine for making 100 bungeo-ppang
(Actually, I wrote this to make it easier to explain.)
The most important thing in capital is intangible assets
in evaluating the wealth of a society
Technology, culture, social institutions and public consciousness are more important and big assets
These are the more important factors in explaining the differences in production capacity between societies.)

2) an increase in consumer goods inventories
I had 10 apples last year, but I have 100 apples this year

But there's a funny guy here
Gold...
I had 1kg of gold last year, and I have 1kg of gold again this year
Then it would be right to see that the wealth of the society is the same
But...
Last year, I was able to buy a machine that makes 10 fish-shaped buns with 1kg of gold
You can buy 2 machines that make 10 bungeo-ppang this year

Then you have the same 1kg of gold, but isn't the wealth of the society increased?
It's a very interesting phenomenon
I have the same thing...
Wealth increases as the exchange rate between goods changes...LOL
There are a few more like this
This is the type of land...

In fact, all goods vary in degree, but they have this property
I had a banana last year
I have one banana this year
Last year, one banana was exchangeable for 1/100 of the bungeo-ppang machine
This year, if it can be exchanged for 2/100 of the bungeo-ppang machine...
Has the society with one banana increased its wealth

So I named this kind of wealth increase as follows
3) an increase in the exchange rate
(In this case, it means a little bit like an increase in passive wealth
I'm not doing anything, but I'm happy because the people around me are good...)

What would happen if the exchange rate was to increase
It's possible in many ways
A case in point is the case of gold and land
While the number of items is limited,
The whole product of the society has grown faster
If the demand for the item is still maintained,
The exchange rate between the item and other items becomes favorable to the item