Monday, August 27, 2007

Recession or Growth ?

source: The Fed

Former US Treasury Secretary Lawrence Summers fear of recession seems un-real to me. The US interest rates are rising not because of inflation but because of growth in the economy as reflected by rise in real interest rates. The growth implies greater investment opportunities while the savings are slightly less than usual due to consumer driven growth. This imbalance of demand vs supply of money is the root cause of rising interest rates. The fear of recession does not seem real to me.

4 comments:

Anonymous said...

is recession ever predictable ??

Vibhor said...

kya baat hai sirr .. is weekend kuch zyada hi josh main aa gaye ... lagta hai poora weekend blog hi karte rahe ..

Lekin mumbai ki kudiyon pe aisa zulm kyon .. woh aapka intezaar kar rahi thee ki aap weekend pe bahar nikaloge aur aap blogiyate rahe :P

Waise yeh anonymous kaun hai .. mujhe Sujay lag raha hai :D

Anonymous said...

man you are rocking. I have to get very regular in reading your blog.

Just don't work too hard.. you remember other thing you have seriously work on now... Enjoy..

Abhishek said...

Thanks Mr. Anonymous. I am trying to be as regular as I can in putting down new posts. Would appreciate your identity.