Wednesday, March 14, 2012

Bank Job

Sachs might seem like a reasonable candidate at first glance. After an early academic career that saw him get tenure in the Harvard economics department at the age of 29, Sachs became involved in providing economic advice to the government of Bolivia during its severe debt and inflation crisis in 1985. His cure, ?shock therapy,? was a combination of rapid trade liberalization, withdrawal of subsidies, and dollarization of the economy. The idea was to effectuate a complete break with the previous cycle of inflation and distortions, and it seems to have worked pretty well. Then circa 1990 he took his expertise east, to post-Communist Poland and Russia. His results in Poland look good, in Russia less so, and the debate over that period has swirled ever since.

Source: http://feeds.slate.com/click.phdo?i=0dcb9b4f52ffeba063eab06ce349d10d

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