Various economies in both developing and developed nations have experienced some tough times. Some of the forces are often beyond the control of the government irrespective of the legal framework put in place. The government can intervene in areas such as inflation and sometimes the exchange rates. The exchange rates are influenced by the value of a country’s level of trading with other nations. When the value of a country’s exports is higher than the imports, its currency is in high demand and the exchange rates increases. In case the imports exceed the exports, the country experiences an unfavorable trade balance. That would explain why the currencies of less developed countries are of low value since their imports are more than the exports.
— Bloomberg (@business) June 21, 2018
Every government aims at improving the economy. This is mainly done through legislation by its relevant organ. The government uses the fiscal and monetary policies to control some factors in the environment. Such factors inflation, this is whereby the prices of commodities rise and the purchasing power of the consumers decreases. The situation is not attractive to the investors. According to Shervin Pishevar, the government’s method of controlling the economy was no longer working, and there was a need to adopt other more effective mechanisms.
Shervin Pishevar believes that the economy has not been performing well for years unlike what many people think. Small businesses and upcoming entrepreneurs face challenges when raising capital either for a startup or expansion. Shervin Pishevar encourages them to take advantage of other modern alternatives. He believes that the small businesses can have a great effect on the national economy. Shervin Pishevar believes that the government of the United States has a challenge to counter the stiff competition from other large economies. Some other large economies have been involved in significant technological improvements, and he sees this as a threat to the performance of the country’s economy.