Mr Shanta Devarajan,how are you this is yohannes from ethiopia a journalist working for the largest english buisness weekkly called Fortune. i attended your video conference last monday on the credit crunch.
At that moment you said that reducing public spending is a viable remedy to reduce ethiopian inflation which is currently reached 60pc on the other hand you told the medias that the US credit crunch will slow down capital flows and as well the amount of remitances to going to african countries.considering the two impacts of the credit crunch one can realise that it would worthen the economy africa specially those like ethiopia affected by infaltion and negative trade balance.
If the remittances and foriegn direct investments are afffected by the current financial crisis, it would be difficult for any government to reduce its spending that would balance foriegn direct innvestments. So how you recommend the ethiopian government to reduce its public spending? it would be nice to get your comment fastly as much as possibele.