Thread by @SAH16928046

Keep an eye on the traded CDS quotations.
Many countries are inching closer to Sovereign Default on financial obligations.
Global Sovereign Credit Risk is entering into a new phase, one which will provide new opportunities for Eurobond, distressed assets and hedge fund managers

Countries that misplay their growth targets suffer in the long run.
High economic growth is not a solution for every nation, as most of the countries in the developing world run out of forex reserves.
It can very well become a major source of instability after some time.
#Minsky

Japan and Spain are well remembered for their economic growth rates from the 1950s to the 1970s.
Spain was booming under General Franco, and so was Japan.
Where do these two countries stand now?
Macroeconomic Models must adjust to the empirical and theoretical ground realities,

I mean, both, Portugal and Greece were doing much better under the fascist colonels than how they fared under democratic regimes.
Political Economy and Democracy twins will not always bring the best results.
Asian Economic Miracle and SE-Asia teach us just that.

Chile developed very well statistically under General Pinochet.
The Chicago Boys used a Chilean model as the stepping stone to introduce shock therapy
Human rights abuses were there, which are unforgivable, and the same can be said about the three South European Nations.

An economy which is gravitating away from the equilibrium needs monetarist style shock treatment.
It's how psychologists treat mad people inside a #sanatorium.
It is a painful way of stabilizing economic disorders akin to mental disorders.
Economists can learn from Psychologists

Pakistan was way ahead of India right up to the 1980s.
It had a stronger currency, lower poverty, more open markets that were blending well with global developments, sizeable free enterprise, less bureaucratic management and red tape, etc
Now its teetering on the brink of default

Look at the example of #Narau!!
The once upon a time #Kuwait of the Asia Pacific Region.
One of the richest nations on the planet.
Today it is one of the poorest nations which is used by the Australians as a Jail.

But of course, among transition and transformation economies, you have good examples such as those of Poland and Mongolia.
Both countries have successfully moved out of the Socialist/Marxist Sphere of influence and are marching forward.
People, and path chosen to evolve matter.

And you have tiny Singapore.
A wonderful example of benign dictatorship based on Platonist Ideals.
Late Lee Kuan Yew was a formidable leader.
Only one man made all the difference.

Well, I would like to conclude by saying that leadership is the key to national development.
The leader who makes the best team, optimally assigns roles to his cabinet/advisors and dutifully delegates & follows up will make all the difference btw a failed and a successful nation.