disequilibrium

International Monetary Fund – Kill or Cure

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This was the title of the cover page of the prestigious magazine, “The Economist” in its issue of 10/1/98. The more involved the IMF gets in the world economy – the more controversy surrounds it. Economies in transition, emerging economies, developing countries and, lately, even Asian Tigers all feel the brunt of the IMF recipes. … Read more

Pricing an Asset

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Pricing an Asset   If there should be a momentary disequilibrium such that the price of an asset were “too high,” causing expected returns to be “too low,” investors would sell the asset and its price would return to the equilibrium level. And, the converse would be true for assets whose prices were “too low” and whose … Read more