META name="y_key" content="f2ab7f45e87c5e0d"> Interactive dialogue: How To Ovecome Economic Down turns?- Blistering Economy.

Saturday, April 10, 2010

How To Ovecome Economic Down turns?- Blistering Economy.

Economy is propping up.
It is a significant sensation.
But ,before we could rejoice on  a comeback ,we hav to seek through the ways and means to combat with the depressing trends and suspending analogies.


Countries have underwent similar trouble , in the past.
The Great Depressions were extremely pressing ,but there was an outlet .
The economies had their own policies , currencies and system .
The single did not intrude the number.
The individual did not force the common.
Thus ,the tide over of the crisis ,became effective and speedy.


Globalisation has prompted a dilemma ,that compelled a serious recession.
The Euro ,which became the official currency of most of the European nations ,is provating a real turmoil.
The Greecian disaster , is the result of the haphazard mangement of the finances.
But ,it is struggling to come out of the present destruction ,since it has the Euro ,as its currency.
Way Back in 1946, the U.S ,was in a worse plight, but in ten years time it emerged as strong economy, not because it paid its debts, but through the inflation and the appreciation of dollar.
That which was sold less in 1946, got a high price in 1956.
The dollar received a stealthy demenaour ,allowing a neat wash up.



There is a prevelant thought , that by increasing the rates , the laibility can be wiped off.
This is an invalid presumptuin, feels Krugman.
Hiking rates ,will depreciate the ,flow of funds.
The restricted outflow ,will once again bring a difficult business progression.
The expenses would be curtailed leaving the markets with no momentum.
This move will affect the primary market and the secondary too.
Thus the rocky tumultous erosion of recession will once again wash the shore.

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