Recently in Economics Category

How a 1930's theory explains the economics of the internet: Ronald Coase discovered “transaction costs” in the 1930s and it looks like his insight explains the extraordinary success of firms that take advantage of the Internet in their business model.


Craig Roth writing in Collaboration and Content asserts that:

Companies that come out of recessions in a stronger position than they went in are those that judiciously invest in technology and related processes that let more work get done with less resources as well as reducing costly delays and red herrings when making decisions. And when the market downturn ends - and it will - opportunistic organizations will be in a better position to succeed than those that had hunkered down during the recession.

Difficult economic conditions can create new opportunities that competitors may not be able to envision.  A company that makes smart cost reduction decisions, invests to create greater efficiency, and takes time to learn about their customer's changing business requirements stands a far better chance to emerge from the recession with better margins and a platform for growth.
I have found Nouriel Roubini's comments on the economy insightful and on target.  Sometimes called "Dr. Doom" for his gloomy predictions about the world financial markets, Roubini has been exactly on target with his analysis of the timing and depth of the financial crisis.  His latest analysis about the Fannie Mae and Freddie Mac solution exposes the flaws in the governments approach to the bailout.

In addition to the article linked to above, Roubini was the academic lead on the World Economic Forum's Financial Development Report 2008. The report provides a rigorous analysis of the world's financial systems and capital markets.

"

The Financial Development Index captures measures of financial stability related to financial turmoil in the US, UK and other countries. The Index puts these measures in the context of a broader assessment of financial development which we hope will promote a balanced agenda with respect to reform."


 James Bilodeau, Project Manager, Financial Institutions Community

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