Category Quora

Which is better, GDP or HDI?

“In my opinion the point of high GDP is to provide better life for people. That’s higher GDP should lead to Higher HDI, otherwise it is not real development. What is your view?” My answer on Quora: It does not strictly follow that higher GDP leads to higher HDI (Human Development Index). GDP is a […]

What is the best way to reduce inflation in a developing country?

My answer on Quora: There are many ways to try to fight high inflation in developing countries because there can be many sources of high inflation. Ultimately, the key differences between developed and developing economies in the context of fighting high inflation often deal with the effectiveness of monetary policy and any reliance on imports […]

Can devaluing a country’s currency increase its foreign reserves?

My answer on Quora: It depends on the size and direction of the pressure on the currency before the devaluation, and how close the new value of the currency is relative to its market value. First, a devaluation implies that a central bank is moving its currency from one fixed exchange rate to another one where it is worth less, relative to the currency […]

Is the Chinese economy sustainable?

My answer on Quora: As it stands right now, China’s economy is not sustainable. The good news is that the Chinese authorities know what they need to do. The bad news is that it is a lot easier said than done, not just for political reasons but for economic ones too. At the heart of […]

What are the effects of monopolies?

My answer on Quora: In general, monopolies are bad for consumers (higher prices and less choice), bad for workers (potentially lower wages) and suppliers, and bad for overall economic growth (less investment). These results arise when a monopoly does everything it can to solidify its monopoly power so that it keeps all the profits in […]

What is the most misunderstood economic concept?

My answer on Quora: That there are laws in economics. In economics, every answer begins with “it depends”. This can be frustrating when you want a straight answer, but it is useful because you have to look at all the circumstances in a particular case before responding with a policy, for example, to fix something that […]

Why is nobody talking about the Greek financial crisis anymore?

My answer on Quora: After Greece received “bail-out” financing from IMF, ECB and European Commission (the Troika) in the midst of its debt crisis in 2010, Greece’s financial troubles re-engage the casual observers interest when repayment deadlines approach. Can they make their payments? If not, what will the troika do? This summer has fifteen of those […]