The economic system that governs the global economy is called the traditional economic order, or TEO, a system in which the basic economic concepts, such as prices and wages, are determined by economic agents.
However, the modern TEO economy is not the same as the traditional economy.
Instead, the current TEO is a complex and evolving combination of a global economy that includes both traditional and nontraditional economies, and a host of economic technologies, including new technologies like artificial intelligence and virtual reality.
In this new economic system the world’s economies are based on trade and finance, and financial instruments are used to facilitate this trade.
These modern financial instruments, which are known as financial instruments and financial intermediaries, include derivatives, credit-default swaps, futures, interest rate swaps, and debt-backed securities.
According to the U.S. Department of Labor, financial intermediary transactions are used in more than $500 trillion in annual transactions, accounting for roughly one-third of total U.N. trade.
This article explores the role of financial intermediation in the global economic system.