Monday, November 9, 2009

Politics and Economics


A clear example of how politics can negatively affect economics:

"The International Monetary Fund said on Saturday it would resume work with Ukraine only after January elections, after a move to hike wages pushed its $16.4 billion bailout "off-track." "


The IMF now does what many Ukrainian and foreign investors are doing - delay everything until after the elections.
At the same time, given the choice of presidential candidates, it's unclear that much will change after the elections...

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