TradFi

Topics found in Web3 that stem from traditional finance.

The financial system is the set of institutions and markets that enable the exchange of funds between savers and borrowers. The financial system includes banks, insurance companies, investment firms, and other financial intermediaries. Governments and central banks use fiscal and monetary policy to influence the financial system. These institutions provide the means by which savers can deposit funds and earn a return, and borrowers can access the funds they need to finance their activities.

The financial system plays a critical role in the economy by facilitating the flow of funds between savers and borrowers. By enabling savers to deposit funds and earn a return, and borrowers to access the funds they need to finance their activities, the financial system supports economic growth and stability. Without Tradfi there would be no Web3, so it is important to understand the basics of how our current financial system works before diving into the world of digital assets and decentralized finance.

Fiscal policy refers to the use of government spending and taxation to influence the economy. Monetary policy refers to the use of interest rates and money supply to influence the economy.