What creates investors, economic planning or political economy planning? These two economic tools seem to be at odds with one and another, yet they are not. It seems to revitalize a slumping economy is through a mixture of the two. Ignoring one for another will dampen any future recovery.
Economic planning is changing the interest rates, devaluating currencies, and so on. The main focus is to increase or decrease investment or consumption. This is the limit of economic planning. Two examples can explain the reason why. First, Argentina has recently devalued its currency in hopes to attract investors.
In the podcast, "All Things Considered" "by NPR, shows the limits of economic planning in the article, "Argentina's Peso Devalued." The result of devaluing the currency has lead to minor price hikes and consumers being more conscious of their shopping habits. Second, another article, "The Downside Of Keeping Interest Rates So Low For So Long," by NPR written by Marilyn Geewax states, "Many economists say such a change would be a mistake. They fear higher rates would discourage big-ticket purchases and business expansions." Throughout this article, the economists consider the behavioral effects it may have on different groups of consumers.
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