Part 2: An economic Policy for dealing with terrorism( spl cross border terrorism)

we will be explaining much of the remaining parts of this article series by taking certain concepts from economics and modifying it for our purpose. economics based argument for terrorism is important and may be even central because costs, resources and benefits are involved for all parties and like most agents in economy, changing costs and benefits ought to alter their behaviours /response.

While mathematical formulation is not necessary to present some of the arguments, it may be helpful. To understand various aspects of terrorism and counter terrorism and implication for policy we will be introducing certain hypothesis ( apart from the central one mentioned in previous article- that is terrorism is just a low cost war for Pakistan's de facto rulers).

Following concepts will be used as guide to understanding some policy options
1.Production function ( and isoquants or our variation the "iso damage" curves)
2.objective function of terrorism/terrorist org.
3. implication of fixed and variable costs
4. Probability function

to be continued

Introduction : A (economic) policy for countering terrorism

Ever since the intention to write the above article was posted shortly after Mumbai attack a number of articles have uncannily come up in media including certin websites reflecting some of our thoughts. However quick scan of IDSA website or even the articles that have appeared since Mumbai attack shows that none of these have never posited the hypothesis- very convincing one and one which will be central to our thinking on economic policy with respect to cross border terrorism must be based on the theory that Pakistan de facto rulers (in the military domain atleast) are trying to wage a very low cost battle against India. Had this fact been accepted long time back a number of options would have opened up before Indian government

to be continued

Re: Bear market in 2008 and more trouble in store in 2009?

Please read our prediction for Bear market in 2008 made in dec 2007 .Click on the link.Bear market in 2008?( read specially the last section prediction for second half of the year 2008). ( a prediction that we also forgot!!!!)

 

Based on the reading, it is possible that 2009 may be volatile movements of the sort seen in 2008 and further corrections to lower levels than seen in 2008.

 

 

PLEASE NOTE OTHER DAY/WEEKLY PREDICTIONS WILL REMAIN  SUSPENDED UNTIL FURTHR NOTICE

 

Re:Predictions and articles

NO NEW PREDICTIONS WILL APPEAR TILL FURTHER NOTICE.