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  1. Sakal Gharelu Ustad

    Economics: Why are mainstream views different from reality?

    http://www.nytimes.com/2015/04/17/opinion/paul-krugman-that-old-time-economics.html?emc=edit_tnt_20150417&nlid=55842100&tntemail0=y @pmaitra - article by Krugman
  2. Sakal Gharelu Ustad

    Economics: Why are mainstream views different from reality?

    I will get back to you soon. Thanks!
  3. Sakal Gharelu Ustad

    Economics: Why are mainstream views different from reality?

    Re: German President to begin 5-day India visit on Feb 4 Well, India is growing exponentially(atleast till 2 yrs ago) so it can sustain high debt levels. A relevant figure to look at is not real debt but debt/GDP ratio. If the % remains constant it is good.
  4. Sakal Gharelu Ustad

    Economics: Why are mainstream views different from reality?

    The current $ line is nominal while inflation adjusted is non-nominal. The inflation adjusted is based on 2005 as a base year and hence you see the current $ line is below it before 2005 and above it after 2005(due to addition of inflation). It is interesting how the figures went up in WW2 and...
  5. Sakal Gharelu Ustad

    Economics: Why are mainstream views different from reality?

    I agreed till the half of the video. The guy simply does not know the idea of economic growth. http://www.nytimes.com/2013/12/21/business/economy/third-quarter-us-growth-at-4-1-rate-in-new-estimate.html If you end the video by predicting doom without any time horizon, then in the long run you...
  6. Sakal Gharelu Ustad

    Economics: Why are mainstream views different from reality?

    Re: We're for 'socialist-type' economic policy, says Prashant Bhushan To add to the above-- it is equally important to look at macro problems in totality rather than choose to just put forward your beliefs as conclusions, such as, banks force govt. to do QE. I think this is the my last post...
  7. Sakal Gharelu Ustad

    Economics: Why are mainstream views different from reality?

    Re: We're for 'socialist-type' economic policy, says Prashant Bhushan But sometimes beliefs help you arrive at definition and thereafter the conclusion. The last discussion was a perfect example. Another trick to win the argument is repeat the information and common knowledge to overload the...
  8. Sakal Gharelu Ustad

    Economics: Why are mainstream views different from reality?

    Re: We're for 'socialist-type' economic policy, says Prashant Bhushan I think this was a very nice and balanced article. I agree with most of it except the part highlighted above. There are many other factors giving rise to the business cycles and monetary flexibility can help control some...
  9. Sakal Gharelu Ustad

    Economics: Why are mainstream views different from reality?

    Re: We're for 'socialist-type' economic policy, says Prashant Bhushan I usually do not get upset during discussions but I definitely do not appreciate mixing beliefs and conclusions.
  10. Sakal Gharelu Ustad

    Economics: Why are mainstream views different from reality?

    Re: We're for 'socialist-type' economic policy, says Prashant Bhushan Cool. I was looking for a modern definition from you, but anyway. So, given your historic stance on the matter we cannot have any convergence on the first question. Given the beliefs one can stick with the historic(0%) or...
  11. Sakal Gharelu Ustad

    Economics: Why are mainstream views different from reality?

    Re: We're for 'socialist-type' economic policy, says Prashant Bhushan Although this one is interesting from the same link!! It is really a question of definition. Where do you stand on this spectrum? Although, I too would think 60% to be a bit too steep.
  12. Sakal Gharelu Ustad

    Economics: Why are mainstream views different from reality?

    Re: We're for 'socialist-type' economic policy, says Prashant Bhushan Why don't you write it explicitly? Ctrl+F did not help. Actually the entire article is very vague!!
  13. Sakal Gharelu Ustad

    Economics: Why are mainstream views different from reality?

    Re: We're for 'socialist-type' economic policy, says Prashant Bhushan What I mentioned above about 'doles' was part of one sentence in the whole paragraph. And the rest was related to the topic and more than sufficient to explain my position on banks and usury. But, I am yet to get your reply...
  14. Sakal Gharelu Ustad

    Economics: Why are mainstream views different from reality?

    Here you go: http://emlab.berkeley.edu/~ygorodni/CGW_inflation.pdf This paper basically suggests a <2% rate and contests the Blanchard view of 4% proposed during the recent crisis. But this is just part of literature, as there are others which are contesting to raise the number. But this will...
  15. Sakal Gharelu Ustad

    Economics: Why are mainstream views different from reality?

    Yeah, PRC is really smart and long sighted but so gullible! Just look at this: United States public debt - Wikipedia, the free encyclopedia and this: U.S. Debt - How Much China Owns In case of bad times, it would make perfect sense for US to default on its debt because a significant portion is...
  16. Sakal Gharelu Ustad

    Economics: Why are mainstream views different from reality?

    I wish the world were simple enough to be summarized in a post. I will try sometime to find an easier way to explain this to you. If you are brave enough, then this article comes the closest to your answer and explaining the art of economics...
  17. Sakal Gharelu Ustad

    Economics: Why are mainstream views different from reality?

    It is a standard optimization exercise and varies by country as well as time..You are not living in a static world to expect it to be the same policy everytime. Now, how can central bank set inflation target? Everyone does a growth forecast, and then look at the growth rate of money(controlled...
  18. Sakal Gharelu Ustad

    Economics: Why are mainstream views different from reality?

    Look anywhere, it is the most common statistic. Look here: United States Interest Rate Keep in mind, in normal times, no one charges nominal rate < inflation.
  19. Sakal Gharelu Ustad

    Economics: Why are mainstream views different from reality?

    I will try once more to explain the 4% number. Real interest rate= Nominal interest rate - Inflation rate (for eg. with an inflation of 7% and nominal rate charged by bank equal to 11%, what you actually end up paying is 4% real interest rate) Now, if you have a deflation in the economy, which...
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