Richest Countries By GDP

Readers Question: Is Real GDP per head a better indicator of living standards compared to growth of Real GDP? Why? Real GDP per capita shows the average income of a country. If Liechtenstein has 0% growth of Real GDP in 2008, average incomes will reamin $118,000. A country like India may have GDP per head …

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Problems of Bank Bailouts

Readers Questions: do you agree with bank bailouts why? or why not? I wrote here: Why we need to bailout the banks The Great Depression was so severe because of the scale of banks who went bankrupt. Banks may not deserve to be bailed out, but, it was a necessity. However, bailing out banks has …

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Implications of 2009 UK Budget

Readers Question: Hey, what do you think are the implications of the 2009 Budget? The most striking feature was the realisation of how much the government was needing to borrow and the depth of the recession. The Large planned rise in borrowing means that there is little if any scope for further discretionary fiscal expansion. …

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Question: Why do Government fail to meet macro objectives?

Readers Question: Why do the Government often fail to achieve its main objectives of high economic growth, price stability, and a surplus on the balance of payments. Other objectives worth adding are low unemployment,  low government borrowing and maybe stable exchange rate. Looking at the current climate of the UK economy, the government is only …

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Forecasts for Canadian and US Dollar

Readers Question What are your predictions for us/Canadian dollar currency. Do you think they will reach par in 2009 ? Recently the Canadian dollar has been weak against the US dollar. This is because of the plunge in commodity prices which depress Canadian export revenues and decrease value of Canadian Dollar. Despite many problems in …

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Safety of The Dollar

The US Dollar is often viewed as a safe haven currency. It is still the world’s reserve currency and the thinking is that if the dollar goes bust the rest of the world will be in an even worse situation. Therefore, during the worst of the economic turmoil, the dollar remained relatively strong because investors …

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