The principle of the invisible hand of the market is a term coined by the Scottish economist and one of the founders of modern economic theory, Adam Smith, to explain the mysterious processes in the market. He realized that the behavior of buyers and sellers in the market is determined not only by their desires, but also by some third party, which is not visible.
The principle of the invisible hand of the market
For the reason that this side is not visible and clearly has to do with the market, it was called ” the invisible hand of the market.” This third party coordinates the decisions and desires of buyers and sellers, and does it without them noticing. Continue reading