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A theory is appropriate as long as it fits into the fact; when a theory doesn't fit in the fact, it's wise to walk with the fact.

Sunday, November 30, 2014

Impact of reducing oil prices

The price of oil in the global market has been declining, we all know that. Policymakers want to know the real impact of it, and implications for the domestic economy. The article (The Geopolitical Impact of Cheap Oil) by Martin Feldstein (Professor of Economics at Harvard University) analyses various aspects of reduction of oil prices.

As a net oil importer of oil, Bangladesh might have similar implications like other importers. However, it has more implication for local electricity production and supply as there are large number of oil-based power generation companies. The consequential impact would be on current account balance and thus  the overall balance of payments. 

Monday, November 24, 2014

The end of China's Economic Miracle?

Bob Davis writes based on his personal experience of working in Beijing as a senior editor of the Wall Street Journal. The attached article explains the continuous downfall of the Chinese economy over the last couple of years, and as he sees -

"In China, I have learned, yellow isn't just the color of development. It is also the color of a setting sun."

Link for the article.