1 What was the most important new thing you learned about ec

1. What was the most important new thing you learned about economic development?

2. If you had to come up with a \"title\" for a book that promoted your views on appropriate local economic development planning and practice now and in the future, what would it be? Share your title and explain the rationale behind it.?

Solution

1.
The new thing. I learned is the role of government, its contribution and its economic policies towards the economic development. In the context of 2007-09 financial crisis, the US government with Fed, took a leaf out of the Keynesian economic perspective and took some extraordinary steps to revive the economy. Though, it had flaws, but it yielded the results, that can be vindicated by the growing US economy with lower unemployment rate, inflation rate at 2% and GDP growing at over 2% rate. So, economic development took place, but with the action plan taken up by the government.

2.
Title would be, Government Intervention and economic development: Myth & Reality.
The rational behind the title is that market based economy does not favor the government role and want to rely on the market based forces. But, it is true, as long as it does not come across a recession. after the outbreak of recession, it is observed across the globe that economy does not recover on its own. It always requires the government and international bodies to intervene to help the economy recover. Whether it is Thailand, Argentina, Turkey, USA and challenges faced by the EU, it always requires intervention to help the economy recover. So, the government, complemented by the central bank (Fed in the USA) has a role to play to revive the economy.