Prof. Mankiw, one of my role models, talks about the world economy. Already more than one year passed since it came out, it is still worth reading carefully: Four Nations, Four Lessons
(1)Zimbabwe: Printing money too fast results in hyper inflation.
(2)Japan: Increasing the govt. spending results in the deficit and debt.
(3)Greece: Keeping the government large results in higher interest rate and default.
(4)France: Making the public welfare better results in higher tax and less work.
After all, stabilizing the national economy is, at any rate, pricey.
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