Comments on: More on the economic crisis http://www.harryrclarke.com/2008/10/25/more-on-the-economic-crisis/ On economics, politics & other things Tue, 07 Feb 2012 11:34:25 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: jc http://www.harryrclarke.com/2008/10/25/more-on-the-economic-crisis/comment-page-1/#comment-7760 jc Sun, 26 Oct 2008 03:21:00 +0000 http://www.harryrclarke.com/2008/10/25/more-on-the-economic-crisis/#comment-7760 Ummm <br/><br/>this ISN'T Ummm

this ISN’T

]]> By: jc http://www.harryrclarke.com/2008/10/25/more-on-the-economic-crisis/comment-page-1/#comment-7759 jc Sun, 26 Oct 2008 03:20:00 +0000 http://www.harryrclarke.com/2008/10/25/more-on-the-economic-crisis/#comment-7759 Rabbe:<br/><br/>We can live with a slower china but at a much lower exchange rate which means our living standards will be reduced to the rest of the world in relative terms. This is a good thing by any stretch of the imagination. Just hope it doesn't remain so for long. Rabbe:

We can live with a slower china but at a much lower exchange rate which means our living standards will be reduced to the rest of the world in relative terms. This is a good thing by any stretch of the imagination. Just hope it doesn’t remain so for long.

]]> By: jc http://www.harryrclarke.com/2008/10/25/more-on-the-economic-crisis/comment-page-1/#comment-7758 jc Sun, 26 Oct 2008 03:17:00 +0000 http://www.harryrclarke.com/2008/10/25/more-on-the-economic-crisis/#comment-7758 harry<br/><br/>Malaysia recovered quickly because they set the exchange rate much higher (weaker) when it was fixed after the crash. They also allowed wage rates to contract and high priced assets to liquidate. They were able to get away with imposing heavy duty exchange controls because they could self finance as they ran a current account surplus.<br/><br/>Stigliz says idiotic things and makes the Nobel basically worthless. harry

Malaysia recovered quickly because they set the exchange rate much higher (weaker) when it was fixed after the crash. They also allowed wage rates to contract and high priced assets to liquidate. They were able to get away with imposing heavy duty exchange controls because they could self finance as they ran a current account surplus.

Stigliz says idiotic things and makes the Nobel basically worthless.

]]> By: hc http://www.harryrclarke.com/2008/10/25/more-on-the-economic-crisis/comment-page-1/#comment-7757 hc Sat, 25 Oct 2008 14:48:00 +0000 http://www.harryrclarke.com/2008/10/25/more-on-the-economic-crisis/#comment-7757 On race and other issues Mahatir may be extreme but Malaysia did recover promptly from the Asian crisis by imposing short-term capital controls. Mahatir's opposition to free markets during times of crisis <a HREF="http://www.atimes.com/asia-crisis/AI21Db01.html" REL="nofollow">was endorsed by Joe Stiglitz and others.</a> On race and other issues Mahatir may be extreme but Malaysia did recover promptly from the Asian crisis by imposing short-term capital controls. Mahatir’s opposition to free markets during times of crisis was endorsed by Joe Stiglitz and others.

]]> By: rabee http://www.harryrclarke.com/2008/10/25/more-on-the-economic-crisis/comment-page-1/#comment-7756 rabee Sat, 25 Oct 2008 06:18:00 +0000 http://www.harryrclarke.com/2008/10/25/more-on-the-economic-crisis/#comment-7756 PS. Mahathir is an irrelevant fool and a racist. PS. Mahathir is an irrelevant fool and a racist.

]]> By: sir henry casingbroke http://www.harryrclarke.com/2008/10/25/more-on-the-economic-crisis/comment-page-1/#comment-7755 sir henry casingbroke Sat, 25 Oct 2008 06:14:00 +0000 http://www.harryrclarke.com/2008/10/25/more-on-the-economic-crisis/#comment-7755 Mahathir reckons: "Only the military power of the US is forcing the world to give value to the US Dollar." This is silly. China, Japan and the MEOPECs are supporting the greenback because it is in their interest to do so, their livelihood depends on it. Mahathir reckons: “Only the military power of the US is forcing the world to give value to the US Dollar.” This is silly. China, Japan and the MEOPECs are supporting the greenback because it is in their interest to do so, their livelihood depends on it.

]]> By: rabee http://www.harryrclarke.com/2008/10/25/more-on-the-economic-crisis/comment-page-1/#comment-7754 rabee Sat, 25 Oct 2008 05:32:00 +0000 http://www.harryrclarke.com/2008/10/25/more-on-the-economic-crisis/#comment-7754 I think that it is prudent at this time for the government not to play up the prospect of continuing growth in China.<br/><br/>The fear is that Australia could be seen as entirely dependent on the China housing bubble not bursting, which may or may not happen. <br/><br/>The message at this point should be that Australia is sufficiently diverse (which it is) to withstand a downturn in China. And that the government is aware and prepared for the consequences (at least start preparing for the consequences). I think that it is prudent at this time for the government not to play up the prospect of continuing growth in China.

The fear is that Australia could be seen as entirely dependent on the China housing bubble not bursting, which may or may not happen.

The message at this point should be that Australia is sufficiently diverse (which it is) to withstand a downturn in China. And that the government is aware and prepared for the consequences (at least start preparing for the consequences).

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