−Problems and solutions of financial/economic system
Static value and dynamic value
In this book, economic value (of assets) is divided into two categories,
static value and dynamic value. The purpose of this division is to understand
essence of finance and economy accurately.
Static value ----- If the asset itself has utility value, the asset is
static value. Commodities, buildings etc. correspond to
Dynamic value ---- If the asset itself doesn’t have utility value and the
source of value are out of the asset, the asset is named
dynamic value. Currency corresponds to Dynamic value.