Thursday, January 29, 2009

Latvia: Another Approach To Fix The Problems

No, I am not a genius, the idea is stolen from David Leonhardt at Economix of The New York Times.

The idea is quite simple. The majority of topics discussed here are related to global macro-economics (well, we have focused quite much on "export mania" lately) , and the second key factor of economic development is technology. Well, demographics are key for long term trends. But besides these, Frank Levy, an economist at M.I.T. (Massachusetts Institute of Technology), argues:

...that institutions - unions, the minimum wage, the tax system, accounting conventions and ultimately the tone set by the government - have the power to either moderate or reinforce the underlying market.


Read the full lecture by Frank Levy here, and think how to fix the Latvian problems with that approach!

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