There was a time when people have not termed money as common medium for transaction . "Barter" system was very common that days , animals were exchanged against certain quantity of grains but due to some disadvantages like lack of a common measure of a value or lack of store of value have shown its negative side . as change is the rule of nature and that so the world around us and economy is doing .
Different economy is opted by different countries as economy plays very vital role in holding financial infrastucture. economy is considered as very wide term , we don't bother to pay attention on it but we all are part of it not going into much deapth i want to give an ex for it , economy is like a big pipeline where our money flows , and a leakage or holding may cause trouble . Different economy has different problem and they also have different soloution , there are 3 types of economies capitalist ,socialist and mixed .
many people get confuse in Economy and Economics , as per Mr Adam Smith economics is all about generating money or we can say "science of wealth" late r he was criticised by other economists but he was not wrong on his part , as his idea of calling economics as a science of wealth must be having some reason behind it and hat reason was low per capita income and widespread poverty that had prompted Mr Smith (father of economics ) to think in different way , economics is a study of how people deal with scarcity if they have limited resources .
As we again focus on our main topic ECONOMY, indian economy is mixed economy thatswhy we still in balance after so much economic hurdles in world as compared to other country . Well its quite surprising that countries with mixed and socialist economy have shown tremendous stability . our growth is around 8% which is gain behind china who is on first spot. mixed and socialist economy are choosen in countries where there is inequality of income are found . european countries are suffering from economic disturbance , in present scenario they should learn something from our economy