Balance in the economy is shown by the balance in both the goods market and the money market. The balance in the goods market is shown by the equality between aggregate demand and supply at a certain price level. In addition, the balance of the goods market is also shown by the equality between aggregate demand and national income at a certain rate of return. Meanwhile, the balance in the money market is shown by the equality between the demand and supply of money at a certain rate of return. The balance in the goods market alone, without balance in the money market, cannot survive because goods and services are produced and purchased using money. Likewise, the balance in the money market alone, without being accompanied by the balance in the goods market, also cannot survive considering that the rate of return in the money market is also affected by the price of goods and services.
Economic balance requires equality between the rate of return in the money market and the goods market. To achieve a balance between the goods market and the money market, it is necessary to have a common rate of return in both markets. For that, there are at least two things that can be seen. First, when the demand for money necessary for liquidity and financing in the goods market can be fulfilled by the money market at a rate of return that is in line with the rate of return in the goods market. Second, when savings of households and firms can be channelled into the money market at a rate of return that is in line with the rate of return in the goods market. If these two things are met, the rate of return in the money market is equal to the rate of return in the goods market.