Microeconomics

Nicaragua President Arnoldo Aleman praised his country’s preliminary approval for entry into the World Bank and International Monetary Fund’s Highly Indebted Poor Countries program. “We are beginning a new phase in our economic and social development, and when the process concludes, we will be free of our heavy debt,” he proclaimed in a ceremony. How does a country celebrate their first step toward getting out of debt? The government decreed a half-day paid holiday for public and private workers to party. (Reuters) ...The Bad News: There’s a terrible financial problem. The Good News: We think we now understand why.