Apparently the laws of supply and demand only apply to Western economies and not the UAE. That is some weird, wacky stuff.
I admit, I only have one economics course and whatever I have picked up from reading on my own, but I do not see how in increase in the monetary supply could not contribute to inflation.
Maybe an expert can explain how this works better than the article does.
This blog began as a description of our life in Al Ain, UAE (United Arab Emirates). Brn worked at the UAE University Libraries Deanship for three years and Bss homeschooled our four children, D, B, P, and O. After returning to the the USA for five years, we are living in Abu Dhabi now.
Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts
2007/12/29
2005/08/09
Bargaining
One of the most alien things here to me is that there are markets or stores where you haggle for the price of things. I am quit possibly the world's worst negotiator (even worse than Homer Simpson), so I'm at a big disadvantage here. I was thinking about this though, and I have decided that it is the manner of the bargining that is different.
In America, we bargin as a group and silently. If merchant A is offering a product at too high a price, we just refuse to buy it until the price comes down rather than individually ask for a lower price. It would be interesting to see if both methods would result in roughly the same average price for products (which would be my guess). But the American method does reward bad negotiators like me.
In America, we bargin as a group and silently. If merchant A is offering a product at too high a price, we just refuse to buy it until the price comes down rather than individually ask for a lower price. It would be interesting to see if both methods would result in roughly the same average price for products (which would be my guess). But the American method does reward bad negotiators like me.
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