What we mean by 'EXECUTION'

What do we mean by ‘Execution’

Execution means completing a process and both parties of the game satisfying themselves. So execution need produce satisfying outcomes for all the parties involved in the game of transactions, else our ‘systemic risk’ will go up creating a need for higher systemic returns in the environment.

I shall elicit how inflation occurs in an environment to highlight how ‘execution’ need be planned.

Suppose that ‘gold coins’ are the methods by which transactions occur. Gold is a rare commodity or a precious metal per se. If the value of the gold goes up then one has to reduce the size of the coin to generate the same value which was available with the same quantity of gold in previous years. So if one gold coing weighs 8 grams and if the price of gold goes up by 50% then the each gold  coin will weigh only 4 grams in the next time cycle. If I buy a Sony Ericscon mobile phone with full functions in the initial cycle, once ‘inflation’ strikes and the gold coin quantity is reduced to half then the sony Erocson can be sold with the same functions only at the ‘doubled price’.

The other option available for the manufacturer is to reduce the function to half so that half gold coin witch fetches the  product is equivalent to the product functions. Since this cannot be done with practicalities of the situation they raise the price of the product to two gold coins double the price of the previous cycle of the economy.

This is how the ‘inflation’ picks up when the value of the currency goes down the price of assets goes up, if not we will see ‘lags’ and ‘anomalies’ in the economy.

So when one executes one need to look into   the general value of the process involved before  taking decisions. For this there are tools like strategic games which need be involved before execution can be planned.