A supply shock is an event that suddenly increases or decreases the supply of a commodity or service, or of commodities and services in general. This sudden change affects the equilibrium price of the good or service or the economy's general price level.
In the short run, an economy-wide negative supply shock will shift the aggregate supply, decreasing the output and increasing the price level.
In the short run, an economy-wide positive supply shock will shift the aggregate supply, increasing output and decreasing the price level.
The GFC has its greatest impact on North America, West Europe and Japan; the GFC can be, in so far, beneficial to the BRICS as they learn to untie their monetary mechanisms from the outdated Bretton Woods institutions. The Eurasian Economic Union (EEU), with the design of a new currency, the Altyn, is already in the making. We should not underestimate the population factor (demographics) of the BRICS, in this respect.
Dear Stephen,
It´s always good to know your opinion.
Thank you again.
But, let me ask you smthg:
Even for underdeveloped countries, which didn´t do the homework yet, do you think that BW Institutions are outdated?
And what is your opinion about the Washington Consensus?
Kind regards.
Yes Aurelio, BW institutions are outdated, even for lower developed economies, homework done or not. The whole thing of the capitalist planned economy, via centralized monetary tools, is a non-go for the next generation economic system. I found some very applicable ideas in the theory of dynamic efficiency, from JH de Soto. One has not to support the yellow brick road to stand for international monetary reform.
WOW...
Thank you again, dear Stephen.
I´ll look carefully what you´ve sent me.
Best regards.
Dear Stephen,
It´s always good to know your opinion. I like the way you see the world.
Could you please share your opinion about the Washington Consensus?
Thank you again.
Kind regards.
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