Recent content by vikkiv

I think it goes something like this: Production function (thus supply-side) &rarr; AS consequently there are: if &Delta;P/P(ex post)>&Delta;P/P(ex ante) then &Delta;U<0 &rarr; &Delta;E>0 So it's just basic macro-principles within general AS/AD framework - first-year uni... With fixed or a...

I'm not very sure about current relevance of "Okun's law" ... some form of aggregate production function would be more appropriate, obviously including stochastic elements and structural/technological dynamics... And from such production function adding capital mobility, expectations and price...

Hummer also won't work if you apply it in a wrong way, thus to make economic theories work - just study and understand it up to adequate level... at least consider limitations as 'ceteris paribus' .. etc... In general - economic theories are not 100% predetermined rules - it's more stochastic...

That's not a surprise - many economists are already expected some sort of such shifts/rejection/delays in payments schedule. IMF/EU and other bail-out creditors for Baltics have strict rules and conditions which currently weren't followed by Baltic gov. Thus such outcome is quite logical. Big...

I think it's false statement - from economics perspective all what happened here - is just simple price level adjustment rather than real wealth destruction. Bubble part were reduced mostly, and partially real economy suffered too, but in general real economy delta is actually too small relative...

Wealth isn't 'destroyed' - investors just get rig from illusions about real value of their wealth. Quite a big part of assets (mostly debitors and good-will) are not recorevable since long time ago, just many were still dreaming this crap really worth something. This illusion dissapeared...