According To Nilesh ShahOf Axis capital[Mint today]there are different standards for the developed and developing world in economic matters
some examples
. Labour and capital are two of the movable factors of production.since developed world has excess capital , they should have free and open markets for moving
capital.. but developing world, with excess labour,cannot move freely labour in developed world like developed worlds move capital in developing world.
.When financial crisis hits developing countries, cutting of fiscal deficit, devaluation of currency, raising of interest rates are suggested. besides privatisation of govt
companies to reduce debt and cost cutting thru layoffs are preached
When it happens in developed world their govt bails everyone out, central bank is used to flood market with liquidity, interest rates are lowered to near zero. currency is
supported thru interventions and govt buys stakes in troubled companies. this is termed global crisis
There is no end to double standards
If a country is economically weak, it is treated like dirt and. Might is right rules the economic jungle. How true
The above are based on article in mint.
some examples
. Labour and capital are two of the movable factors of production.since developed world has excess capital , they should have free and open markets for moving
capital.. but developing world, with excess labour,cannot move freely labour in developed world like developed worlds move capital in developing world.
.When financial crisis hits developing countries, cutting of fiscal deficit, devaluation of currency, raising of interest rates are suggested. besides privatisation of govt
companies to reduce debt and cost cutting thru layoffs are preached
When it happens in developed world their govt bails everyone out, central bank is used to flood market with liquidity, interest rates are lowered to near zero. currency is
supported thru interventions and govt buys stakes in troubled companies. this is termed global crisis
There is no end to double standards
If a country is economically weak, it is treated like dirt and. Might is right rules the economic jungle. How true
The above are based on article in mint.
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