I have recently read about the launch of Ford’s new car for the emerging markets – the Figo. The car is expected to be priced at between 5.000 and 6.000 EUR and will be sold initially in India. At the same time I could not help thinking what impact such a low-cost vehicle would have on Europe’s economies, provided it could be sold at these prices.
Financial Innovation and the Fractional Reserve System. What is to Blame for the 2008 – 20?? Economic Recession.
In the flood of debates on the issue of the current economic recession, an impressive number of economists have mentioned that the fundamental problem is systemic in nature. However, few have explicitly indicated the true cause – the fractional reserve system.
“Socially engineering the bottom billion”
The Western world has the responsibility to transfer its best practices to the governance structure of developing countries in order to deliver stability.
While reading Neagu Djuvara’s book “Thoctomer”, I felt intrigued to sketch a brief comparison between the two great economic systems that the Western civilization has used during its existence.
Let’s imagine a Europe without Lisbon. Let’s imagine a world without Europe.
On the economic side, in the recent past a revolution took place. As business processes became ever more complex and markets increased their level of competition, outsourcing seamed the best way to adapt the old-fashioned institutions into becoming more efficient.
As the theory of relativity has shattered Newton’s discovered principles into a small space-time capsule in which they were relevant, and as philosophy constantly renders religion as useful mainly in the cultural field by dismantling its axiological monopoly, so does the world-system theory exercise a huge paradigm change in the fields of economics, history and politics.
And, as all good things in this world, it’s not mainstream.