Globalization, Deglobalization and Reglobalization The idea of globalization Free Trade Vs Protectionism Barriers of Trade Stages of Economic Integration World Trade Organization, as an institution was established in 1995. It replaced General Agreement on Trade and Tariffs (GATT) which was in place since 1946. About WTO: The World Trade Organization (WTO) is the only global […]
Why they are called Bretton Wood Twins? As both institutions are outcome of a conference – United Nations Monetary and Financial Conference at the Mount Washington Hotel in In Bretton Woods, New Hampshire in 1944. Purpose of Bretton wood institutions:The basic aim was to help rebuild the shattered post-war economy ( WW2 had just finished […]
What is Balance of Payments (BoP)?The Balance of Payments or BoP is a statement or record of all monetary and economic transactions made between a country and the rest of the world within a defined period (a financial year). These records include transactions made by Households, Companies and Government. According to the RBI, balance of […]
Taxes are levied by governments on their citizens to generate income for undertaking projects to boost the economy of the country and to raise the standard of living of its citizens. The authority of the government to levy tax in India is derived from the Constitution of India, which allocates the power to levy taxes […]
Public economics is the study of government policy through the lens of economic efficiency and equity. At its most basic level, public economics provides a framework for thinking about whether or not the government should participate in economics markets and to what extent its role should be. In order to do so, microeconomic theory is […]
“Financial market” is a phrase used to denote the total infrastructure which facilitates the trade of financial securities.Financial securities can be like currency, bonds, stocks, derivatives, commodities, forex etc. Structure of Financial Market in India: Definition of Money Market and Capital Markets Difference between Money Market and Capital Markets: Basis for Comparison Money Market Capital Market […]
What is a Bank: A bank is an institution which accepts deposits from the public and in turn advances loans by creating credit. The act of lending and borrowing creates both credit and debit. “Debt represents money that has been borrowed but not yet been paid back, Credit represents money available to be borrowed.” The […]
Monetary Policy is defined by the Reserve Bank of India as “the policy of the central bank with regard to the use of monetary instruments under its control to achieve the goals specified in the RBI Act, 1934.” Monetary policy is concerned with the measures taken to regulate the supply of money, the cost and […]
“Inflation, public enemy number one” – Gerald Ford Inflation “Inflation means that your money won’t buy as much today as you could yesterday“ Inflation reduces the purchasing power of money. It hurts the poor more as a greater proportion of their incomes are needed to pay for their consumption. Inflation reduces the savings, pushes up […]
