STIMULUS is stimulating WHAT- [Part-2]

It has been basic presumption that merely printing money cant generate value,hence it should lead to inflation .But positive side factored on premise that more spending,more consumption may also stimulate demand and production and economic activities may enhance.
In reality that seems to hardly happening ,the old recurring theme prevails that has witness that all effort to stimulate things in right direction are hampered by its inefficient and malicious distribution   distort the theme behind grand scheme.
AS if newer printed money is finding its way in speculation,stocks are at their all time high and volatility has risen that causes game of great earning/losses and might also be fueling underworld economies .
It appears that value of currency of a nation is determined apart from all economic rationale ,also to dominance enjoyed by particular country through its innovative technology and power muscle etc through which it can control major world institutions,as if monopolistic policies are at play.
The value of currency of a nation may also depicts strength of its institution and internal cohesiveness ,but with gradually internal turmoil gaining regular event in many parts may lead to a state where no epic centre of economy is located.
With diminishing interest rates people in developing countries,the common man is mostly hurt as there is no social security and large part depends on interest income,sustained effprt to create lasting economic development is being replaced by adhocism.
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Blog at WordPress.com.

Up ↑

%d bloggers like this: