Floating with an anchor
Article Abstract:
A fashion has developed in some emerging economies for fixed targets for inflation used with flexible currencies. Colombia, Chile and Brazil have moved to floating currencies. New Zealand is among the pioneers of inflation targeting, and Brazil has developed sophisticated methods of targeting inflation, while Chile has a long history of using this policy. Floating currencies are less likely to be hit by speculation, though there are problems in targeting inflation when rates are high. This policy combination has also been used at a time of economic recovery, and may not perform well when times are harsher.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 2000
User Contributions:
Comment about this article or add new information about this topic:
The good, and bad, model guide
Article Abstract:
There are a number of economic models, which have both advantages and disadvantages. The American and New Zealand models are both characterized by low taxes and inequality. The East Asian model includes a wide variety of approaches, though savings rates have tended to be higher in East Asia, and these economies have tended to be open to the outside world. The Japanese and German model are both characterised by high educational levels, though Japan has come to be seen as too protected from outside competition, and the German labor force as too congested by restructions and high benefits.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
Freedom from fear?
Article Abstract:
Crises of capitalism have occurred in the 20th century, with the Great Depression being memorable. Keynes has been portrayed as finding a solution to the problem, which meant government action, rather than inaction. However, this representation of Keynes is contested, and another view is that government intervention can exacerbate crises, which was what occurred in the Great Depression. High interest rates and reductions in government spending were policy mistakes of that time. The Japanese crisis of the 1990s was also exacerbated by government intervention.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Connecting with consumers. AOL elbows into Asia
- Abstracts: A stirring in the attic. Man overboard. America's spring of vigour
- Abstracts: Dumbing down. From labs to riches. Europe's start-up stampede
- Abstracts: Sorting out school choice. The struggle to create creativity: Japan. Teaching the teachers
- Abstracts: Patient capital. Rites of passage. Best of both worlds: pharmaceuticals in India