You Think – Article Example
Article Review The article “World Economy: Past and Future Tense” by The Economist uses the world economic performance in 1990s to predict the world economic conditions in 2015. In 1990s, just like now, USA invested in disruptive technology as it invented the internet. Its GDP growth rate rose to 4% by 1999, about twice higher than the country’s average. Meanwhile, in the other parts of the world such as Japan and Germany, the economy performed poorly. This is also happening now. The second parallel of 2015 with 1990s is the economic problems of emerging markets, e.g. falling oil prices and rising debts. In 1990s, the economic problems in emerging markets were caused by fixed exchange rates and foreign debts.
This article is related to the class material because it talks about issues of economic history. First, understanding economic history helps in economic predictions because history repeats itself and people can learn from the history so that they cannot repeat the same mistakes. According to this article, people can learn from the history of late 1990s when economic conditions were similar to those of today. This article is also related to the path-dependence theory because the events that occurred in 1990s are reflected in the current economics of the world.
The Economist. “World Economy: Past and Future Tense”. The Economist Magazine, Dec 20, 2014. Retrieved from http://www.economist.com/news/leaders/21636742-world- economy-2015-will-carry-troubling-echoes-late-1990s-past-and-future-tense