Current event summary Assignment Example | Topics and Well Written Essays - 500 words - 5

Current event summary - Assignment Example ents the global political scenario as the underlying cause of the widespread fear of inflation many people with philosophical mind are currently suffering from. Krugman negated all assumptions leading to the fear of inflation and tried to dilute the fear potion further by identifying deflation as a bigger danger than inflation. Krugman confesses that Federal Reserve is printing more money that apparently makes the circumstances favorable for inflation, yet there remains little chance of any rise in inflation given the banks are not willing to circulate the cash because of the widespread economic recession. This attitude of banks all over the world itself forwards a discouragement for the Federal Reserve with respect to printing more money. The author reiterates that the influence of debts on economical strength is very little and gives the real example of the Bank of Japan, that incurred large debts in the period between 1997 and 2003. Despite that, the consumer prices declined. Kurgman also put forward the examples of Canada, Belgium and Japan whose debts significantly crossed their G.D.P.s and still, the governments never thought about inflating the debt in order to finish it. Krugman emphasizes that the fear of inflation among public has been mainly inculcated by the economists who have adopted a biased approach towards the matter. Present age is an age of economic decline that has occurred globally. The global economic decline has fundamentally surfaced as a result of upsets in the political scenario all over the world, and the economical health of many countries has deteriorated. The area that has suffered the most because of the present economic recession is corporate business which has declined to extinguishment in many countries. People are not willing to invest money and other resources in business because they see little room for the expansion of business. People are aware of the fact that market is currently suffering from a scarcity of dollars.