News Release: Finance and Economics, Research

Sep. 16,  2008

Lower Interest Rates, Borrowed Money Won't Fix Economy

Essie Maasoumi, Arts and Sciences Distinguished Professor of Economics at Emory, says the turmoil in the financial sector "is not a problem that is new or unpredictable." He attributes much of the current economic situation to the "lack of independence of the Fed, letting immediate interests dominate the outcome, no matter what the long-term consequences."

As for whether the Fed's action to reduce interest rates will help, Maasoumi says that "even the most superficial commentators realize that the Fed is out of bullets." He predicts that continued flooding of the market with credit and borrowed money will just exacerbate the situation two years if not two months down the road."

Maasoumi's specialties include economic forecasts and policy, welfare economics, international political economy, labor issues, Middle East economics, financial economics and econometrics. He is the editor of the journal, Econometric Reviews.  404-727-9817, esfandiar.maasoumi@emory.edu

Price of Oil, Gas Markets

The fluctuating price of oil and its effect on the gasoline market are among the issues addressed by Hashem Dezhbakhsh, professor of economics, director of undergraduate studies and chair of the Department of Economics. His other specialties include financial markets and volatility, and general macroeconomic trends and changes.  404-727-4679, econhd@emory.edu

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