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by Ashraf Laidi
Posted: Feb 20, 2010 5:00
Comments: 30765
Posted: Feb 20, 2010 5:00
Comments: 30765
Forum Topic:
EUR
Discuss EUR in this thread
u might be right
but u put the beef before the charette.
excellent explanation
Exactly, another reason why a "crisis" is not so bad. Recent examples are Tunisia and possiblye Egypt down the road. Possibly China will experience similar change down the road (after the failed Tiananmen Sq attempt). Iranian also tried but without success.
So in summary a crisis is not so bad thing.
GL.
It is quite normal an economy to experience pullbacks (some call it crisis). It is not normal the central bank or the government to try to eliminate the cycle (flatten the cycle) and achieve permanent growth because this eliminates the stimulus among the economic agents to utilize the scarce economic resources in the best possible way.
In other words, it is healthy for an economy to experience some sort of pullbacks (crisis) from time to time to release the "strains" in the economy becuse otherwise the strain is accumulating and releases in full fledged crisis (or recession) at a later stage.