Archive for the ‘IHT Managing Globalization’ Category

IHT Managing Globalization: Is it stagflation?

January 13, 2008
Posted by: Maurizio Morabito — 13 January 2008 1:25 am

May I respectfully point to an article on the Jan 10 issue of The Economist suggesting low rates could be rather more useful at this particular time of subprime borrowing crisis?

In the worst cases, the average levels of interest rates were broadly the same in the years after the initial trauma as they had been before it. In countries that experienced only limited economic damage, policy rates were kept materially lower after the crisis struck” from “Economic Focus – Same as it ever was

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IHT Managing Globalization: Can ethanol avoid an oil curse?

January 13, 2008
Posted by: Maurizio Morabito — 13 January 2008 1:20 am

The curse of resources has hit pretty much every country in the Third World apart from South Africa perhaps. The more there is stuff to extract from the land, the more a dependent economy develops – dependent, that is, on redistribution of riches by the state in legal and illegal ways. Cue clientelism, corruption, cultural lethargy, if not outright civil war.

Would it be any different for ethanol made out of food crops? Perhaps, if the production is well spread around the world, and so the potential for becoming incredibly rich much lower.