Double Journal Entry #9

1. Why is inflation less of a concern in the new world economy? Inflation has become less of a problem in this highly competitive, transparent economy(or Nude Economy). This in turn makes the increasing of prices a difficult task and inflation rates will be better managed.

2.What is the difference between a negative feedback economy and a positive feedback economy? Negative feedback economies were characterized by newly introduced products start out at high prices, leading to less cosumer purchases(Supply and Demand Issues). On the other hand Positive feedback economies don't suffer supply and demand issues because with so many new products that aren't as expensive consumer purchasing is more frequent.

3. Give a example of how new technologies can provide developing countries with an opportunity to catch-up with modern economies? A great example in the book was in Monterrey Tech University, with e-campuses accross Latin America this is great to give everyone a chance to receive the best education available. Also this is a solution to lack of educators in Latin America as well.

4. What is one prediction the author made concerning the new economy that appears to be true? The biggest prediction I saw was the over-reliance on our economy the main thought that the economy is this machine that runs on consumer preferences and just how that is an attitude that will be here for a while.

5. Why is excessive trust in free-market economies promoted by free-market fundamentalists a cause for concern? The main issue with over-trusting the free market economy is the thought that the market will "take care of itself" and this has led to complacency as far as regulating the market.

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. I feel as though that regulating when and how our money will be circulated is a great idea, however it depends who is moving this money. In this article this is a policy to fund businesses as well as investors to make business moves and I believe it has a good premise of helping out initially.

Who is in charge of regulating this money?

Are the borrowers in a bad position financially before they begin?

http://finance.mapsofworld.com/capital-market/global/

8. What is the cause of the crisis of complexity in the new world economy?Exponentiality of plenitude.