This refers to the article “US credit downgrade worries Indian business schools” (August 10). It is the financial economy of the US (as opposed to the real economy) that has, at least momentarily, been hit. In the real economy, the unemployment rate has fallen and growth has not decreased. The unemployment rate has decreased from 9.8 per cent in November 2010 to 9.1 per cent now (the US economy added 117,000 new jobs in July’11 beating experts’ expectations). Even the GDP has seen a growth rate of 0.4 per cent and 1.3 per cent in the last two quarters respectively.
Is the transmission of the crisis to the real economy inevitable? And is this a warrant of death? We don’t think so. Let us wait and watch before sending panic signals.
Vijay Dwibhashi & Harish Natarajan, Greater Noida
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