On World Economy

china ghost cityMuch is discussed today about the state of global economy and its trajectory. The near-catastrophic events of the 2007-2009 period triggered (but not caused) by the US credit card crunch and subprime mortgage crush have not faded away and almost all the countries in the world are floundering if it comes to economic growth, creation of job places, increase of exports, etc.

Many complain about insufficient demand and recommend to revive new-Keynesian measures. Others continue to recommend boosting demand by keeping low interest rates and welcoming fiscal incentives. At ICBS we think differently. The real problem is with the lack of supply. We are at the edge of the Kondratiev wave and desperately looking for new technologies to invest into. There is a lot of money ready for investment. This money is directed into real estate and land, giving rise to ludicrous urban projects all around the world (think about the ghost cities in China). The money is seeking a new ?steam engine?, a new ?railway system?, new ?chemical and electric products?, new ?automobiles?, new ?telecommunication networks?. What would really be new we do not know. Perhaps it would be nanotechnologies, nuclear energy, or cosmos. Whatever it would be the global economy could not be fixed until it arrived.

At ICBS we are conducting research on the above issues. Becoming out student you may personally participate in these creative endeavours.

As to one aspect of the global economy?s present struggles you are encouraged to read a brief article by Briton Ryle which may be downloaded from here.

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