Economics What is the Concept of Green GNP ? 31 Jul 202013 Jun 2021 What is the Concept of Green GNP ? In the recent years the economists have realized that the costs of producing GDP need to be incorporated in estimating GDP to…
Economics… Difficulties in the Measurement National Income 30 Jul 2020 Difficulties in the Measurement National Income - There are many difficulties in measuring national income of a country correctly. The difficulties are of two types in nature conceptual and statistical.…
Economics Income Method of Measuring National Income 29 Jul 20209 Aug 2020 Income Method of Measuring National Income - Income method measures national income at the phases of distribution and appears as income paid and/or received by individuals of the country. In…
Economics… Expenditure Method of Measuring National Income 28 Jul 20209 Aug 2020 Expenditure Method of Measuring National Income - Expenditure method gives the national income by adding up all the expenditures made on goods and services during a year. Income can be…
Economics Value Added Method of Measuring National Income 27 Jul 20209 Aug 2020 Value Added Method of Measuring National Income - Value Added Method is also called Output Method or Production Method. In this method, the economy is divided into different industrial sectors…
Economics Fiscal Policy, Equitable Distribution of Income and Price Stability 26 Jul 202028 Jul 2020 Fiscal Policy and Equitable Distribution of Income - Existence of inequalities is a social evil and no measure of economic development can increase welfare unless an equitable distribution of income…
Economics… A Brief Introduction to Public Finance 25 Jul 2020 What is Public Finance ? According to Dalton, 'Public finance is concerned with the income and expenditure of public authorities and with the adjustment of one to the other.' According…
Economics How Fiscal Deficit Affects Economic Growth ? 24 Jul 2020 How Fiscal Deficit Affects Economic Growth ? Keynesian View - According to many Keynesian economists fiscal deficit promotes economic growth. In India, in the past some years as between 1997-2003,…
Economics What are the Different Types of Deficit ? 23 Jul 202026 Jul 2020 What are the different types of Deficit ? Budget Deficit - A budget deficit occurs when an organization or government does not earns enough revenue to cover its expenditure. There…
Economics… What is Money Financing of Budget Deficit ? 22 Jul 2020 What is Money Financing of Budget Deficit ? The government can finance it budget deficit by printing high powered money. The revenue raised through printing new money is also called…
Economics… How Growth of Money Supply is related to Budget Deficit ? 21 Jul 2020 How Growth of Money Supply is related to Budget Deficit ? There are two possible links (or relations) between budget deficit and growth of money supply. First, the budget deficit…
Economics… What is the Government Budget Constraint ? 20 Jul 2020 What is the Government Budget Constraint ? Generally, the government finances its expenditure through the revenue received from taxes (both direct and indirect). When government expenditure exceeds its revenue received…
Economics… What are the Effects of Debt Financing ? 19 Jul 202019 Jul 2020 What are the Effects of Debt Financing ? Mainly there are two effects - (a) Crowding Out Effect of Debt Financing (b) Wealth Effect of Debt Financing (a) Crowding Out…
Economics… What is Government Borrowing or Debt Financing of Budget Deficit ? 18 Jul 2020 What is Government Borrowing or Debt Financing of Budget Deficit ? Government borrowing is a fiscal method used by the government to mobilise savings of the community for economic development…
Economics What is the Role of Fiscal Policy in Economic Growth ? 17 Jul 2020 What is the Role of Fiscal Policy in Economic Growth ? In the developing countries, government plays a very important role in accelerating economic growth and development by using fiscal…
Economics… What is Fiscal Policy and Its Objective ? 16 Jul 2020 What is Fiscal Policy and Its Objective ? Fiscal policy is the policy which is related to the Taxation, Expenditure and Borrowing by the Government. Fiscal policy is the most…
Economics What is the Role of Monetary Policy in Economic Growth ? 15 Jul 2020 What is the Role of Monetary Policy in Economic Growth ? Economic growth means expansion in productive capacity or capital stock which in turn increases real national output or income…
Economics… What are the Instruments of Monetary Policy ? 14 Jul 2020 What are the Instruments of Monetary Policy ? The Central Bank of a country has the responsibility of maintaining economic stability by controlling the volume and direction of credit in…
Economics What is Monetary Policy and Its Objective ? 13 Jul 2020 What is Monetary Policy and Its Objective ? Monetary Policy - Monetary policy is concerned with the measures taken to regulate the supply of money, the cost and availability of…
Economics How to Correct Disequilibrium in the Balance of Payments ? 12 Jul 202012 Jul 2020 How to Correct Disequilibrium in the Balance of Payments ? According to the classical view of the adjustment mechanism, an active or passive balance, accompanied by an inflow or outflow…
Economics What Causes Disequilibrium in the Balance of Payments ? 11 Jul 2020 What Causes Disequilibrium in the Balance of Payments ? Before we explain what causes disequilibrium in the balance of payments of a country, we need to understand the factors or…
Economics What is the Equilibrium and Disequilibrium in the Balance of Payments ? 10 Jul 202019 Jul 2020 What is the Equilibrium and Disequilibrium in the Balance of Payments ? When we add up all the demand for foreign currency and all the sources from where it comes,…
Economics… What is the Concept of Balance of Payments ? 9 Jul 2020 What is the Concept of Balance of Payments ? In the modern world, it is very rare that any country is self sufficient means that it can produce all the…
Economics… What is Capital Output Ratio ? 8 Jul 2020 What is Capital Output Ratio ? Capital output ratio is the amount of capital required to produce output worth Rs.1. If Y stands for output (or income) and K stands…
Economics… Which Factors Determines Economic Growth ? 7 Jul 2020 Which Factors Determines Economic Growth ? - The process of economic growth is highly complex and is influenced by various factors such as social, political, economic and cultural factors. According…
Economics… What is Economic Growth and Development ? 6 Jul 2020 What is Economic Growth and Development ? Economic Growth - It has been defined in two ways - first - Economic growth is defined as a sustained annual increase in…
Economics… Indian Response To The Financial Crisis 5 Jul 2020 Indian Response To The Financial Crisis - The major effects of the financial crisis were - 1. Stock Market Crash 2. Depreciation of Indian Rupee due to capital outflow by…
Business… Impact of Global Financial Crisis on India 4 Jul 2020 Impact of Global Financial Crisis on India - Since 1991 following the policy of globalisation, the Indian economy was also opened to foreign capital and trade of goods and services,…
Business… Global Financial Crisis (2007-09) 3 Jul 2020 Global Financial Crisis (2007-09) - Burst of Sub-Prime Housing Bubble - The Origin of Crisis - From the second half of 2007 in the United States a financial crisis started…
Economics… GATT and WTO 2 Jul 2020 GATT and WTO - General Agreement on Tariffs and Trade (GATT) - During the period of Great Depression (1929-1933) and the Second World War various countries imposed high tariffs on…
Business… Effects of Regional Trade Agreements – Trade Creation and Trade Diversion 1 Jul 2020 Effects of Regional Trade Agreements - Trade Creation and Trade Diversion Liberalisation of trade by eliminating tariffs within a free trade area or customs union has both benefits and costs…
Business… Global Commercial Policy 30 Jun 2020 Global Commercial Policy - Commercial policies are the policies related to the imports and exports of a country. Commercial policy plays a vital role in promoting growth and well being…
Business… Globalisation 29 Jun 202019 Jul 2020 * Globalisation - Introduction Globalisation means different things to different people. In economics, globalisation refers to the increased openness of an economy to the international trade, capital flow, transfer of…
Economics… Effects of Tariffs and Quotas 28 Jun 2020 Effects of Tariffs - Tariffs are used as a trade barrier to protect the domestic industries from foreign competition. We use partial equilibrium approach represented by supply and demand analysis…
Economics… Trade Barriers 27 Jun 2020 Trade Barriers - Despite having many benefits of free trade, various countries have put up barriers to trade. Many instruments are used as barriers to trade but most important are…
Economics Case for Protection 26 Jun 2020 Case for Protection - By protection we mean in order to save the domestic industries from low priced imports of well established foreign industries some barriers against import of foreign…
Economics… Case for Free Trade 25 Jun 2020 Case for Free Trade - 1. Gains in Output and Well Being From Specialization - The free trade is fundamentally based on the gain in output and well being a…
Economics Free Trade VS Protection – Intro 24 Jun 2020 Free Trade VS Protection - Intro Free Trade and Protection comes under the commercial policy. The commercial policy is related to whether a country should adopt the policy of free…
Economics Anti Recessionary Policy to Remove Cyclical Unemployment 23 Jun 2020 Anti Recessionary Policy to Remove Cyclical Unemployment - When aggregate demand falls short of aggregate supply at full employment level of resources, a deflationary gap emerges in the economy. This…
Economics Insider Outsider Model 22 Jun 2020 Insider Outsider Model - Insider Outsider Model is a new approach about wage employment relationship. According to this approach, those who become unemployed as a result of fall in the…
Economics Pigou Effect and Employment 21 Jun 2020 Pigou Effect and Employment - Cut in wages and consequent fall in prices produces a favourable effect on the aggregate demand and employment in another way which was first pointed…
Economics Keynes’s Effect and Employment 20 Jun 2020 Keynes's Effect and Employment - Keynes's Effect says that the cut in money wages and consequent fall in prices is likely to reduce the rate of interest which will favourably…
Economics… Wage Cut and Employment 19 Jun 2020 Wage Cut and Employment - The relationship between the wages and employment always has been a controversial issue between the Keynes and classical economists. Classical economists believed that a cut…
Economics… Concept of Full Employment 18 Jun 2020 Full Employment - Full employment may be defined as the situation in which all those who are willing and able to work at prevailing wage rates are employed for the…
Economics… Unemployment – Concept and Types 17 Jun 2020 Unemployment - Unemployment is defined as a state of affairs in which there are a large number of able bodied persons of working age who are willing to work but…
Business… Market Structures – Monopoly, Oligopoly, Monopolistic, Perfect Competition 16 Jun 202017 Jun 2020 Concept of Market For an individual it would mean a shopping complex or a place where he/she can buy things. But, in economics, the concept of market is very different…
Economics Quantity Theory of Money – Cambridge Cash Balance Approach 15 Jun 2020 Quantity Theory of Money - Cambridge Cash Balance Approach - In cash balance approach to demand for money Cambridge economists, Marshall and Pigou, laid stress on the store of value…
Economics… Quantity Theory of Money – Fisher’s Transactions Approach 14 Jun 202014 Jun 2020 Value of Money and the Price Level - Value of money means its purchasing power in terms of goods and services in general. It depends on the prevalent price level.…
Economics Baumol’s Inventory Approach to Transactions Demand for Money 13 Jun 202013 Jun 2020 Baumol's Inventory Approach to Transactions Demand for Money - Baumol put forward a new approach to demand for money which explains the transaction demand for money from the viewpoint of…
Economics Friedman’s Theory of Demand for Money 12 Jun 2020 Friedman's Theory of Demand for Money - Friedman put forward demand for money function which shows how the changes in the money supply affect the price level in the economy.…
Economics Tobin’s Portfolio Approach to Demand for Money 11 Jun 202012 Jun 2020 Tobin's Portfolio Approach to Demand for Money - James Tobin, an American economist, in his analysis makes a valid assumption that people prefer more wealth to less. According to him,…
Economics… Keynes’s Theory of Demand for Money 10 Jun 202010 Jun 2020 Keynes's Theory of Demand for Money - How much of his income or resources will a person hold in form of ready money and how much will he lend depends…
Economics Cambridge Cash Balance Theory of Demand for Money 9 Jun 20209 Jun 2020 Cambridge Cash Balance Theory of Demand for Money - Cambridge cash balance theory of demand for money was given by Cambridge economists, Marshall and Pigou. It places emphasis on the…
Economics Fisher’s Transactions Approach To Demand for Money 8 Jun 20208 Jun 2020 Fisher's Transactions Approach To Demand for Money - Fisher in his theory of demand laid stress only on the medium of exchange function of money. All transactions such as buying…
Economics… Concept of Demand for Money 7 Jun 2020 Concept of Demand for Money - To understand the concept of demand for money we need to understand Why people demand for money ? According to the classical economists, money…
Economics Determinants of Money Supply 6 Jun 202015 Jun 2020 Determinants of Money Supply - Money supply is composed of currency held by the public (CP) and demand deposits of the public with the banks (D). M = CP +…
Economics… Measures of Money Supply 5 Jun 2020 Measures of Money Supply - Many definitions of money supply have been given and many measures have also been developed based on them. Components of money supply have been differentiated…
Economics… Concept of Money Supply 4 Jun 2020 Concept of Money Supply - Money supply plays a very important role in the economic growth of a country. Any increase or decrease in the money supply directly affects the…
Economics… Methods of Credit Control 3 Jun 202015 Jun 2020 Methods of Credit Control - The central bank of a country is the apex body of the monetary system which has the responsibility of controlling the volume and direction of…
Economics… Central Bank and Its Functions 2 Jun 20202 Jun 2020 Central Bank and Its Functions - Central Bank - Central bank is an apex body or institution of the monetary system which regulates the functioning of the commercial banks of…
Economics… Credit Creation By Banks 1 Jun 2020 Credit Creation By Banks Credit creation is one of the most important functions of the banks. How the bank creates credit is not a secret. The banks do not keep…
Economics Role of Commercial Banks 31 May 2020 Role of Commercial Banks in Economic Development - The rate of economic development depends on the rate of capital formation. The rate of capital formation depends on the rate of…
Economics… Functions of Commercial Banks 30 May 202031 May 2020 Functions of Commercial Banks - The main functions of commercial banks are to receive deposits and advance loans. Banks borrow in form of deposits and lend in form of advances…
Economics… Commercial Banking – Origin and Evolution 29 May 2020 Commercial Bank - It is a business organization which borrows and lends money, and makes profits in the process. The difference between a money lender and a commercial bank is…
Economics… Credit – Meaning, Functions and Purpose 28 May 2020 Credit - Credit is created when one party (a person, a firm) lends money to another party, the borrower. In general, credit mean the finance provided to others at a…
Economics Role of Money in Economic Development 27 May 202027 May 2020 Role of Money in Economic Development of The Developing Countries - Generally it is believed that the economic development of a country depends on the growth of real factors like…
Economics… Importance of Money 26 May 2020 Importance of Money - According to the classical economists, money only affects the price level in the economy and it has no effect on the levels of the real income…
Economics… Managed Currency Standard or Modern Monetary System 25 May 2020 Managed Currency Standard or Modern Monetary System - Paper money has a very important role in our modern economic or monetary system. The term paper money only applies to the…
Economics… Forms of Money 24 May 2020 Money of Account - It is the monetary unit in which the accounts of a country are kept and transactions settled, means, in which general purchasing power, debt and prices…
Economics… Money and Its Functions 23 May 2020 Definition of Money - Professor D.H. Robertson defines money as "anything which is widely accepted in payment for goods or in discharge of other forms of business obligations." According to…
Economics… Evolution of Money 22 May 2020 Before we study what is money, we need to understand its evolution. So, let's begin ... Evolution of Money - In the beginning money wasn't the same as we know…
Economics… Barter System and Its Difficulties 21 May 2020 Barter System and its Difficulties - Barter System - It is system of exchange in which goods or services are exchanged with other goods or services directly. In the starting…
Economics Sacrifice Ratio and Rational Expectations 20 May 202023 May 2020 Sacrifice Ratio and Rational Expectations - Rational Expectations hypothesis assumes that people use all the available information including government's fiscal and monetary policies to predict the future. They correctly predict…
Economics Sacrifice Ratio and Policy of Disinflation 19 May 202019 May 2020 Sacrifice Ratio and Policy of Disinflation - Disinflation policy has been the objective of policy makers. But disinflation or reduction in inflation rate involves the cost to the society in…
Economics Relationship between Short Run and Long Run Phillips Curves 18 May 202018 May 2020 Relationship between Short Run and Long Run Phillips Curves - The position of a short run Phillips curve (SPC) which passes through a point on the long run Phillips curve…
Economics Long Run Phillips Curve and Rational Expectations 17 May 202018 May 2020 Long Run Phillips Curve And Rational Expectations - The viewpoint about inflation and unemployment put forward by Rational Expectations Theory which is the cornerstone of recently developed macroeconomic theory, popularly…
Economics Long-Run Phillips Curve and Adaptive Expectations 16 May 2020 Long-Run Phillips Curve and Adaptive Expectations - The concept of long-run Phillips curve was given by Friedman and other natural rate theorists. According to them, the economy will not remain…
Economics Natural Rate Hypothesis and Adaptive Expectations 15 May 2020 Natural Rate Hypothesis and Adaptive Expectations - Friedman's View Regarding Phillips Curve Another explanation of occurrence of a higher rate of inflation simultaneously with a higher rate of unemployment was…
Economics Collapse of and Shift in – Phillips Curve 14 May 2020 Collapse of Phillips Curve in the USA (1971-91) - During the sixties Phillips curve became an important concept of macroeconomic analysis. The stable relationship described by it suggested that policy…
Economics Inflation – Unemployment Trade-Off — Phillips Curve 13 May 2020 Inflation - Unemployment Trade-Off --- Phillips Curve Keynesian Explanation of Phillips Curve - The explanation of Phillips Curve by the Keynesian economists is quite simple. Keynesian economists assume the upward…
Aim Institute of Economics 