Free Essay Sample Dedicated to the Prominent Economists

Fan Gang

Fan Gang is an economist whose is the chairperson for China Reform Foundation. As an economist, Fan Gang is making remarks regarding the debt issue that is facing China. In his remarks, he ascribes that the debt issue is a significant concern to the economy although the condition is manageable. Further, he explained China was facing the debt issue because of excess capacity that was carried forward from the year, 2004 up to 2010.

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It is essential to learn that reducing money supply is an indicator that the economy is gaining stability as a result of the stabilization of the country`s currency.

One interesting thing about the talk is Fan Gang insisted that China is on the down cycle clearing debt. I think this is good news to anyone who is uncertain about the condition of the debt in China. Fan believes with the coordination of various stakeholders and the government, the strategic economic policies that are implemented will help China to clean-up debt with a projection period of two to three years.

Ernesto Zedillo

Ernesto Zedillo is not only an economist but also the former president of Mexico. Ernesto was the guest at the Graduate Institute to address the theme, 'The mounting challenges of global governance.' Ernesto is the chair in Yale University heading the center for the study of globalization.

In his talk, there are a few points I picked. One of the points is that global governance is an inevitable aspect that is integral for smooth running of institutions. Ernesto is much concerned with the state of governance. I quote, Ernesto said, "If we want global institutions to run smoothly to achieve efficacy, there should be better rules and better ways to enforce those rules." However, the greatest challenge towards global governance is lack of political will to spearhead the idea of global governance.

The interesting thing about the talk is Ernesto has emphasized the importance of global governance, that is, to ensure the smooth running of the institutions. Therefore, it is important to consider the systemic economic overhaul architecture if the problem of global governance should be addressed.

Haruhiko Kuroda

Kuroda is the governor of the bank of Japan. Kuroda gives his view about the CPI of the year 2015 in the ADB meeting. Kuroda is confident the bank of Japan will meet the 2 % target for the CPI in 2016.

I have learned a few factors that respond to the dynamics of inflation. The existence of rapid growth of the economy is an indication that the target will be met. Besides, the rising wages is another factor that influences the rate of inflation. The last factor is preparedness for any eventuality regarding inflation. In other words, the strategic plans are in place to respond to future dynamics of the economy. All the above aspects are important when determining the level of inflation in a country.

The most confusing thing is that the decrease of unemployment in a country brings in two issues. On one hand, the decline in unemployment makes the labor market tight and competitive (prices and wage increases) while on the other hand, reduction of unemployment will increase the GDP. Regarding the highlighted factors, it is confusing how an equilibrium will be attained if a decline in unemployment will increase inflation at the same time improving living standards.

Raghuram Rajan

Rajan is an international economist and a professor of finance at the Chicago School of Business. In his interview, Rajan is sharing his opinion regarding the crisis and the fragility of the world economy. From his interview, it is evident to note that Rajan identifies three fault lines to explain his position regarding the world economy. Among the factors, income inequality, debt, international capital mobility, and government programs are the aspect that determines the condition of the economy.

Importantly, inequality is increasing because of an overreliance on technology and increase pressure on trade, especially, in the United States.

BROAD

From the talk, microeconomics is a roadmap that highlights individual and economic issues and how these issues influence decision-making. Therefore, microeconomics stem from the individual, household, and firms` behavior to propel allocation of the scarce resources and to deal with the forces of demand and supply.

The review of the various economists has led to the conclusion to the idea that the economic approach depends on the discipline of specialization or the aspect of specialty of the economist. The response in talk varies from one economist to the other because of the background of work. For instance, an economic solution is derived from a specific economic problem. For this reason, each economist is giving his solution but putting into consideration the economic approach. That is, explaining the phenomenon from the economics point of view. Ideally, these economists are addressing the issue of households and firms, and the factors that determine the demand and supply of goods putting into consideration the macroeconomic factors.

Questions emerging from the review of the talks

If wages continue increasing each time, is there a likelihood the inflation rate will reach high levels that are unsustainable?

What is the risk of increasing unemployment to the economy?

What is the long-run effect of increased credit profiling especially to households in the US?

Reference

Zedillo: The Mounting Challenge of Global Governance [Video file]. (2016, March 4). Retrieved from https://www.youtube.com/watch?v=CLNhoLnXfso