The 2015 Nobel Prize in Economics

On Consumption, Poverty, and Welfare

In a year where the S&P 500 had the largest losses (in commodities since 2008), the 2015 Nobel Prize in Economics was delivered to British-American Economist and Princeton University Professor Angus Deaton , whose contributions and research work are focused not only in Consumer Behavior, in large and small scale, and the difficulty to aggregate such Consumption Behavior, but also in poverty and welfare. His work should be inspirational to Latin American countries and other developing countries, such as African countries, and other third world nations, to find ways to overcome the hardness of leading currency markets and their effect on import-export balances.

I believe that implementing Foreign Exchanges strategies, including both private and mixed investments (a hybrid strategy with some institutional partners), will allow developing nations to overcome not only the effects of inflation, especially on imported goods, but also confront – in extreme scenarios – their inability to move in a balancing direction. An agile strategy of solid banking transactions utilizing ForEx arbitrage, in particular, triangular arbitrage can lead to a consolidated cushioning game design mechanism for the long-term. This is wonderful if the larger-scale investors can look into such as investments in the US Dollar, Euro, and British Pound, as key references, among others. This may also set limits and controls on other strategies against hard currencies, such as, the local currency devaluation.

VIDEO: Prof. Deaton speaks of his Nobel Prize Award