Today is a great time for some economists but a terrible for the world economy. In this difficult time economists fight themselves to show how their different theories and models are the right to solve the crisis; now they have the central attention of the media for something good or bad.
Heroes and villains
The public perception have changed quickly. Some of economist are blamed for the situation. They were praised some years ago, and now they are found guilty with the current situation. While economists who were back in the stage in that time, they are now more popular and play a main role in finding a solution.
My perception
I recommend that we have to take care about easy solutions of the problem; the experience teach us that they do not exist. Many of the solution alternatives who were sold by my colleagues are oriented to spend more money or to decrease taxes; I agree with these alternatives, but I considered that these are only partial answers to the big question. In my opinion, the wrecked economy has to start running again, but it is necessary to fix and to rethink how we would like that the economy will work in the future. For example, firstly the soundness of the capital market has to be recovered from this unpleasant moment. Because I think the market is still the best for the economy and it needs perfect information, we need to improve the role of the public institutions to solve the information problem that in my opinion was one of the guiltys of this mess. The policymakers with enough information at the right time could have taken actions to avoid this dangerous position.
Tuesday, February 24, 2009
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