What's the difference between finance and economy?
Economics is a subject that designs all aspects of social life. Economics is more extensive and macroscopic than finance. The concept of economy is bigger than finance, including the production, circulation, exchange and distribution of the whole society. Economy is a broad concept, and "economy" refers to how to achieve the maximum effect at the lowest cost, that is, how to choose the one with the lowest cost and the maximum effect among various possible choices, that is, under the constraints of various subjective, objective, natural and interpersonal conditions. Finance is a special industry with monetary funds as its business object, serving social production, and it is only a branch of social economy. Deng Xiaoping said: Finance is the blood and core of modern economy. Internationally, finance generally has two branches, one is to study the laws of financial markets, such as the pricing of financial instruments, which is what we generally call financial engineering; The other branch is corporate finance, which studies the behavior of microeconomic entities in the market, such as the optimal capital structure of companies. This is corporate finance. Finance is the financing of funds, which is to study the cost value and investment of funds. Studying how to invest and finance is a part of the economy, and finance is the lifeblood of the economy.