03-10-2009, 05:18 AM
Perhaps feeling and observation of effects of sonami of current recession are new to us, but not to the economy where it generated from. We will have to see history of US economy to see how did they tackle with these in past. Also, see how war torn countries were re-developed and re-constructed after two world wars through credit creation and deficit financing.
To us, problem is, we neither have experience to combat with it, nor prepared. Even in most cases, we don't know what to do, what policies to adopt. Developed countries are more prepared, historically used to bear and combat with the effects of shocks, know what to do, more answerable to their citizens, and are in better position as compared to developing economies. So, they would lead the recovery and would get it at the expense of developing nations. Thus, the developing countries would have to see more severe effects which would have more longer lasting impacts on their economies in long run. Only countries which are in isolation can avoid its repercussions, but how many such countries are there in todays world.
Dears, if US $ would plunge, currencies of many countries would be washed away, as whole global financial system revolves arround US$.
To us, problem is, we neither have experience to combat with it, nor prepared. Even in most cases, we don't know what to do, what policies to adopt. Developed countries are more prepared, historically used to bear and combat with the effects of shocks, know what to do, more answerable to their citizens, and are in better position as compared to developing economies. So, they would lead the recovery and would get it at the expense of developing nations. Thus, the developing countries would have to see more severe effects which would have more longer lasting impacts on their economies in long run. Only countries which are in isolation can avoid its repercussions, but how many such countries are there in todays world.
Dears, if US $ would plunge, currencies of many countries would be washed away, as whole global financial system revolves arround US$.
