• 2006-11-13

    indifference lies in difference


    Will the political election outcome really have a major effect on the economic performance,either in terms of knee-jerk economic reaction,as often witnessed in stock market,or in terms of long-term macroeconomic fallout?

     This seems to be too broad and intricate question to be ever granted a quick answer.But it is not as nearly a complicated question as it seems,not really.According to New Yorker Magazine staff writer James Surowiecki,the answer is a clear-cut No.

      Surowiecki's latest piece tackles the thorny issue of the interrelationship between Political election results and the long-term/short-term economic reactions.Economists are actually  torn on this,but James did seem to have a point here.His observations are solidly founded on released study results and widely accepted theories.And he drew conclusions carefully,logically and eloquently.The whole analytical process seems,at least to me,who you may argue is a perfect layman,to be flawless and sound.With all the data and proper conclusions duly drawn therefrom,suffice it for me to arrive at the same Emphatic No.

      Economics and politics,so it seems,are two very different things after all.Overlaps,but no firm interlink.

      For more information on this issue,or the pleasure of reading James' piece,please click here .