The global financial crisis that hit the world economy in 2008-2009 became a valuable test for economics. Various macroeconomic models failed to predict the occurrence of the crisis. Economists try to refine economic theory in order to explain the occurrence of the crisis and prevent such crisis from recurring.

Amid these efforts, this book is present, presenting economic theory with a different perspective in looking at an economy, including in its relation to finance. The theories of production, consumption, and investment are revisited, as well as the relationship between money, output, and prices. It is also discussed the use of debt financing and equity financing, as well as its implications on economic balance and economic and financial stability. With a more appropriate theory, a more accurate picture of what's really going on with our economy is obtained.