Mishkin's text on money, banking and finance has illuminated my understanding of the financial world. The relevance of learning about monetary economics cannot be understated because we are now one year into the credit crunch with no end yet in sight, and, personally, because I have just began investing in equities, reasoning that we are likely to have hit the bottom, or, if not, that I have a long time horizon anyway. Furthermore, the efficient markets theory has further discouraged me from pursuing technical analysis more seriously than simply checking for support and resistance levels.
Inflation has truly affected the economy, including my family. Philippine economic growth has slowed down, and there are fears that we are only about to enter a global recession. I am still able to save and invest a substantial amount every month, but it is hard not to feel the effect of rising costs on my discretionary spending. I am lucky to be working for IBM, which continues to grow despite the general downturn in the US because of its global presence. The rising dollar, however, makes it likely that growth this quarter will be dampened. Overall, however, I still see a lot of growth, and I remain optimistic about the future. I just hope the economy recovers soon.
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