Thursday, January 24, 2013, 7:30 p.m. Sunday, January 27, 2013, 7:30 a.m.
The global financial crisis has prompted some policymakers around the world to tighten economic controls, restricting currency and capital, capping interest rates, and imposing import/export licenses. Governments should be use caution when manipulating the free flow of currency and goods – history shows it can lead to an uptick in black market violence.
Professor Kislaya Prasad at the University of Maryland’s Robert H. Smith School of Business recently studied this effect. He talks about his findings in this edition of Smith Business Close-Up.
Prasad is a research professor and director of the Smith School’s Center for International Business Education and Research. His principal research focus is on the computability and complexity of individual decisions and economic equilibrium, innovation and diffusion of technology, and social influences on economic behavior. His research has been published in the leading economic journals.