In fact, the economy is not magical. It typically acts on things that are obvious and it greatly elevates the value of common sense. In this regard thinking about the invisible is so simple that anyone can apply it.

Data and analytics, in my opinion, are the two most important pillars.

According to John Kay, author of "The Truth About Markets"; He generally says that the biggest economic problem of communism is the lack of providing incentives. But  it omits one particular detail. Incentives do not have to be positive, Another strong inducement was the potential risk of being sent to the Gulag Prison Camps. The only distinction was that it was a negative incentive.

The lack of trustworthy data on the supply-demand balance and production figures was a problem for communism. Data reliability, or what we refer to as "data integrity," wasn't  made into an issue..

The Central planning was processed based on old, out-of-date data. Economic decisions made in free markets with outdated or incorrect data can be erroneous. Because the basis is incorrect.

The market only operates on services or products with monetary value.

It is not easy to measure the disasters that the profit of demanding cheaper electrical energy and the environmental pollution that will occur to produce cheap energy may cause in the upcoming years. Because, while one can be measured in monetary terms, other effects are extremely difficult to quantify. In recent history, we have all witnessed an example of this. The European Union has made numerous efforts in recent years to transition to green energy, but they have not been able to analyze its economic contribution, and with the unexpected war that broke out right next to them, so all green energy planning was thrown away.

Therefore, in such matters, we move from the frontier of economic science to the border of political economy. In the war environment, we have experienced very clearly the problems that may arise from foreign policy. Let us now turn to domestic politics. Although many conditions are required for the free market to function in terms of domestic politics, that is, the country's macroeconomics; (a) It operates in a harmonious environment where contradictory behavior is immediately enforced, i.e. in a climate of swift justice; and (b) it operates in an environment where a very rich or powerful section or monopoly does not exert pressure on the system.

When we cross the border of political economy, it is clear that we are entering a different region where some components have changed. But, this is also inspired by the mindset known as the economic approach. This does not mean focusing on the "economy", on the contrary: the economic approach is much more comprehensive and much simpler than this.The economic approach is based on believing in data rather than instincts or ideologies to understand how the world works, the reasons why incentives are successful, how resources are distributed and what barriers people face in accessing those resources, whether they are tangible like food or transportation, or intangible like education or love. In short, economics is arithmetic, accurate data analysis. They are even correct assumptions.

The economy does not have any magical aspects.

It usually acts on obvious things and places a high value on common sense. In this regard, thinking about the invisible is so simple that anyone can do it. We see the significance of data since we accept that economics is based on data, analysis, and mathematics. The social media sector has made it abundantly clear to us all how crucial data is, even when viewed from a different perspective.

These phenomena were able to transform our most private and personel secrets into commodities. We can say that "social data" is the new precious metal which is a gold for these businesses. Of course, we also wonder if we still live in the Wild West when we observe the harsh, data-driven functioning of social media. However, from an economic perspective, it is a magnificent illustration of what can be achieved with the correct data. Can you imagine the loss that could result from insecure data?

Apart from data, analysis is also important. For instance, when the stock market was first established in the 1980s there was no financial information from the prior years. Even in the years when the first stock exchange operations were made, financial data was rare. Even if this data exists, many of the acceptances in former times are useless today. Because modeling is evolving as a result of technology. Consequently a high-yield formula can only be profitable for a brief period of time before other investors start flocking to the top of the formula. The economy, business, and markets are evolving and constantly changing.  Analysis methods that work well in one period may not work well in another. In short, if you look at the past, you will see a different world from today.

In summary, the equipment that constitutes the country's economic road map is data security and analysis capability. Making the decision and carrying it out are all that remain after that. Wrong analysis, the Enron scandal of 2001 showed the effects of data retention.

Wishing you a pleasant day.

The information, comments and advice contained herein are not within the scope of investment consultancy.