Oil prices rose again in world markets as investors pump money back into commodities. Fears of inflation continue to swirl around the proposed $700 billion bailout of American financial companies.
Randall Filer, a professor of economics at Hunter College and the Graduate Center of the City University of New York, speaks with Martin Savidge about how the crisis affects the borrowing power and interest rates in developing countries. Filer also expects the crisis to subside in a few months with a boon to U.S. taxpayers.
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06/20/2009 :: 05:03:02 AM
MASSAWE Says:
I order to cushion from this global econimic crisiss Developing countries, Tanzania in particular, should respond by doing the following;
Fiscal policies should be adjusted to rise public spending as a tool to stimulate spending in the economy.
It is viatl, to recapitalize banks and increase financing for small and medium enterprises which accounts for larger percent of GDP IN these countries.
Interest needs to be curtailed to promote interbank transactions and lending to SME’S
Lastly, greater emphasis should placed in mobilization of domestic resources and reducing aid dependence.