Will the economy continue to be grim in 2009? It would definitely being more misery and unemployment for sure.

Question

Can someone provide answer to this from a macroeconomic point of view? I mean demand and supply and real interest rate stuff?

Answer 1

unless and if the government is taken in the hands of some experts in this field the economy will continue to grim

it is said that if the RBI rate of interest{ROI} other banks ROI goes up goes up then the producers will be tempted to borrow only less money and demand and supply of commodities goes down so the inflation is controlled

{but the government is not taking much of steps to protect its citizens}

Answer 2

Rising prices and decreasing value of major currencies such as the US dollar and GBP are not a good indication of any improvement in the future. Things will become more expensive, and the situation could get worse and worse. I don't think cutting interest rates and so on is enough to combat this. The Federal Reserve did so a few months ago and still the situation has not really improved.