Double Entry Journal #9

1. Why is inflation less of a concern in the new world economy?
 There is less inflation-prone environment created across the globe by the very fluid new world economy with its twin economic and technological revolutions.

2. What is the difference between a negative feedback economy and a positive feedback economy?
Consider the classic cycle of wheat: when prices rise, farmers produce more, consumers buy less, and equilibrium is restored at a lower level of demand. It is limited by short-term supply- and-demand constraints.
 
3.Give an example of how new technologies can provide developing countries with an opportunity to catch-up with modern economies?
In education, the opportunities are equally tremendous. To give just one example, in Mexico, the Monterrey Tech university has in a few years become one of the world's foremost distance learning systems, with some thirty connected campuses across Latin America offering each student access to the same star professor. In many developing countries, teacher networking over the Internet is leading to better curriculum development and rapid exchanges of best practices.

4.What is one prediction the author made concerning the new economy that appears to be true?
 The hub-and-spoke network developed by the U.S. airline industry since deregulation means that 80 percent of U.S. airline industry travel now takes off or lands at the busiest 1 percent of airports. If a problem hits one or a few big hubs, it ripples throughout the network.

5.Why is excessive trust in free-market economies promoted by free-market fundamentalists a cause for concern?
With the central planning model gone for good, more politicians and other players see the market as the solution to all problems, sometime dumping on government while they are at it.

6.Read and link to a website that provides information about regulation and markets. Based on the information provided in the website, what is your position on markets and regulations? Then list two questions you have about markets and regulation.
Market Regulations It is pretty much just markets is stuff you sell or show off and regulations is just rules and i think we need both regulation and markets.

7.What is the cause of the crisis of complexity in the new world economy?
A crisis  of complexity is brewing. Human institutions tend to evolve only slowly, in a linear way.