The US Treasury Secretary suggests that the world must do three things to boost growth: 1. US should act to strengthen growth and employment 2. Europe must work on putting confidence back into its financial system 3. Emerging economies must continue to stimulate domestic demand and allow the exchange rate to float For the full…
Business Administration Department
DJIA or Fear Index?
Dow Jones Industrial average is jittery. So what does this mean? The media would tell you that the markets are jittery because S&P downgraded T bills and that a double-dip recession is around the corner. Stock prices are indicative of two things: underlying value of companies in the long run, and investor confidence in the…
The Debt Ceiling – beyond the media hysteria
The media loves politics, especially presidential election politics, so the frenzy about the debt ceiling is not surprising. But, beyond the politics (which I do not claim to understand better than anybody else), what are the real economic issues associated with failing to raise the debt ceiling? Is this really a crisis? A few observations…
