Global Economic Imbalances
Unless the policymakers take a sincere action to this problem, economic depressions seems to be an everlasting challenge to the world.
Economic downturns and deficit are sometimes political games for the politicians. Global imbalances of this sort are not only disturbing for the country but for a whole nation which has extends with economic and social impact to other countries in this industrialized world since no one nation can stand alone. The world has been deeply integrated and countries are more dependent on one another than ever before.
United States deficit is topping its borrowing limit. Borrowing has become a tradition for years. New money has been being printed to solve the economic problems although new printed money can resolve the problem for a short term, while on the long run it just worsen the total situation since new printed money devalues the currency.
Policymakers often fail to address this problem properly. Bail outs were offered not only to banks but to countries, yet they seem to fail since a great depress has been traditional to appear once or twice in a decade. Unless the policymakers take a sincere action to this problem, economic depressions seems to be an everlasting challenge to the world.
Modified 2011-06-09 15:32:22
Research question: Economic depression defy advancement of a society. How to balance our economy ?