2:13 PM
US A MA
Atif Aslam is going to marry his fiance Sara Bharwana this week.26th mehndi , 28th baraat & 29th Walima at Royal Palm Club Lahore -...
Monday, March 25, 2013
Cyprus- Bailing out Economic Bubble
Paul Krugman summarizes the origins of Cyprus' problems in (here): the banking system, a housing bubble and an overvaluation. He
says that it was as “if Cyprus has managed to combine in one place everything
that has gone wrong elsewhere”. One could add policymaking to it.
I’m from a country that had (and
has) “creative” policymakers. We’ve seen a lot here. Especially during hyperinflation-years.
But, what I see emerging from a small island can put all the wrong Brazilian
attempts behind. It just scares me.
The way out found by Cypriot
policymakers
was to tax deposits to help pay the bills. I’m not kidding. They’ve
decided to
impose a suddenly loss of wealth in country lacking competitiveness (the
overvaluation issue), whose problems emerged from the banking system,
though...
Deal of the week
