Group items tagged

"Burma, also known as Myanmar, has been implementing economic and political reforms, resulting in various sanctions against it being lifted." The Asian Development Bank has approved loans for Burma after sanctions had been put on them.

This article elaborates on the fact that Burma is in dept and it's been not recognized for loans. Burma is on of the poorest countries in Asia and it suffers highly under the it.

This article has no direct correlation to supply side of an economy, as it mainly talks about Cypriot economy's bank crisis - credit crunch, predictions on GDP and changing patterns of banking (limitations to every-day withdrawals from ATMs). But the reason I chose this article is that they should aim at increasing the production side of an economy and so aggregate supply, shifting the LRAS curve to the right, and, in addition to that, structural reforms of the economy which overly depends on the banking. Particularly, Cyprus should undertake interventionist supply side policies, such as investments in infrastructure - roads, railways, harbours, airports and telecommunications all serve to lower production costs of all economic agents in a country. Or perhaps investments in technology and industrial policies which would increase the productive capacity of an economy.

This article opens a question whether circular flow in Britain still operates normally, because firms do not have a wide access to the savings of households (banks) anymore, which leads to the lack of investment (injections to circular flow). This also affects GDP as expenditure method involves spending by firms and means less or even negative GDP growth rate. Lack of the investment spirit is partially present because of the firms' fear of weak demand as well. Yet the latest policies might open the tap, especially the new Funding For Lending Scheme (FFL).