So guys .... you people might learned about the great depression in 1930's .... and you people are lucky that you are experiencing a little bit same situation now a days in the economies of the world.
People will probably disagree with me for declaring them "lucky" because the prices are sky rocketing and business activities are tooooo slow .... But guess what .... after the great depression Jhon Meynard Keynes emerged with new theories for economics which changes the whole thinking of the world ... so such "costly" experiences don't occur often .... therefore consider your self lucky!
To tackle this situation State Bank of Pakistan like all the Central Banks of the World is playing very actively to control the situation in the country. The have decreased the CRR and SLR which will bring much liquidity in the market. Like all other sectors of the economy, banking sector is also suffering from this slump. Recent rumors for bank default added a lot in this slowdown of business activity.
Purpose of discussing all these things is that these are what you will be going to discuss in your paper of JAIBP. Because now Institute of Bankers Pakistan is concentrating much on the practical case studies for its examinees. The pattren of the paper is very much changed now. Although the previous papers help you to prepare for the exams but you should also keep in mind and have a know how of current situations.
i agree with this
ReplyDeleteyes, definitely we are lucky but the issue here is that this situation has shattered the base of whole economis theory of capitalism. The theory on which the whole world economic system was based, was flawed and it give rise to whole lot of discussions regarding the effectiveness of capitalism and role of government in the economy.
ReplyDeleteThis was a recession which hopefully didnt transformed into a depression because of the timely intervention of the respective governments in the form of bail out plans.
At the time of the Great depression, it took a lot of time for economists to figure it out that the invisble hand on which the people had blind faith is a total failure and there is need of government to take care of and amend the flaws of free market economy...so we are lucky in a sense that we didn't waste time this time to think about what to do and to find about the reasons of this recession....