My answer on Quora: One of the most telling and paradoxical events in the world of finance happened when Standard & Poor’s downgraded US government bonds in August 2011 for the first time ever. Instead of investors reducing their demand for a bond that is now deemed by a leading credit rating agency as riskier than previously […]

My answer on Quora: The credibility of central bank plays a strong role in its ability to achieve its objectives, which often includes price stability (i.e. stable inflation around a desired target). If a central bank lacks credibility, investors and firms won’t have much confidence in the central banks ability to keep inflation around its […]

“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 […]

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 […]

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 […]

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 […]

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 […]