Tuesday, January 16, 2007

Feeling Down? Try Fiscal and Monetary Easing

Recently I have been feeling a little under the weather - to go with the gloomy and rainy weather I guess. So I have been struggling as to what to do about it. Looking for clues I thought about how economies recover a down spell.

Interesting enough economies go through recessions -depression too! And no, Prozac is of no use in this case! When economies undergo a negative growth -contracting if you wish- fiscal and monetary easing are to the rescue.

Fiscal Easing: that's when the government steps in and hikes up spending to stimulate the economy. So I thought to myself how do I apply this in my personal situation. Well it would be nice for starter if someone paid me to feel better.. but I wont bet on that! So how about retail therapy? Research shows that shopping does wonder when you're feeling blue -actually I made this up, but I am sure there is some research out there that proves it.. or just try it and find out for yourself.

Monetary Easing: that's when central banks reduce interest rates -mainly among other measures. By reducing interest rates the cost of money becomes lower which encourages borrowing and investment which ultimately makes the economy tick again. So I thought to myself maybe I am setting the bar too high.. I should lower my expectations and take it easy on myself. This way rather than being paralyzed due to expectation of overachieving, if my expectations are set lower I have a better chance of achieving something.

So let's see if this helps me out of contraction..

1 comment:

hglcjjj said...

hi We had prepared 50,000 dollars for your gift Please visit my website immediately