Start by Starting…
Start by Starting......
Economics = Deals with science of production , distribution and consumption of goods and services.
two types ===
1) Micro economics
2) Macro economics
These two kinds were introduced by Ragner Frisch (Norwegian economist).
Micro economics = which deals with individual decision making units like domestic units, individual producers, consumers.
Macro economics = which deals with economy as a whole.
two types ===
1) Micro economics
2) Macro economics
These two kinds were introduced by Ragner Frisch (Norwegian economist).
Micro economics = which deals with individual decision making units like domestic units, individual producers, consumers.
Macro economics = which deals with economy as a whole.
Economic Liberalization
It was introduced in India by Dr. Manmohan Singh (FM under PVN Rao Govt) in 1991.
Why Chinese economy is better than India's economy?
General Reason = Economic liberalization in India was introduced in 1991, but economic Liberalization in China was introduced way ahead in 1978 by Deng Xiaoping (architecture of Chinese eco liberalization.
Two important components of Economic Liberalization are --
1) Structural reforms
2) Macro economic stabilization.
Structural reforms -- 4 D's
1) Decontrol
2) Deregulation.
3) Delicensing
4) Disinvestments.
Macro economic stabilization --
1) to control inflation.
2) to reduce Fiscal deficit.
3) to correct Imbalance of Payments.
It was introduced in India by Dr. Manmohan Singh (FM under PVN Rao Govt) in 1991.
Why Chinese economy is better than India's economy?
General Reason = Economic liberalization in India was introduced in 1991, but economic Liberalization in China was introduced way ahead in 1978 by Deng Xiaoping (architecture of Chinese eco liberalization.
Two important components of Economic Liberalization are --
1) Structural reforms
2) Macro economic stabilization.
Structural reforms -- 4 D's
1) Decontrol
2) Deregulation.
3) Delicensing
4) Disinvestments.
Macro economic stabilization --
1) to control inflation.
2) to reduce Fiscal deficit.
3) to correct Imbalance of Payments.
Inflation
Rise in prices of goods and services.
Its implications -- leads to decrease in value of currency, hence decrease in purchasing capacity of consumers.
Measurement of Inflation --
3 parameters
1) WPI
2) point to point inflation
3) CPI
1) WPI (Wholesale Price Index)
An index which measures or tracks prices of goods at stage before retail level.
Launched in 1952-53 (base year). On 14th May 2010, base year changed to 2004-05, now changed to 2010-11.
Now uses 676 items.
In 1993-94, number of items was 435.
It is the central measure of Inflation in India.
WPI related to Industrial goods determined on monthly basis while related to primary goods - agriculture , power , fuel on weekly basis.
Out of 676 commodities (493 = are industrial goods).
2) CPI (Consumer Price Index)
An index which measures prices of goods at the stage when it reaches to consumers.
3 types...
a) CPI (industrial workers) - 260 commodities.
b) CPI (non-manual urban workers) - 180 commodities.
c) CPI (agriculture workers) - 180 commodities.
3) point to point inflation
inflation to be taken exactly a year back, just to check the progress of a nation.
Suppose, on 28th july 2009 = Rate of 5 goods was = Rs 100,
now, on 28th july , 2010 = Rate of same 5 goods is = Rs 105
means, inflation is 5% (point to point basis).
Rise in prices of goods and services.
Its implications -- leads to decrease in value of currency, hence decrease in purchasing capacity of consumers.
Measurement of Inflation --
3 parameters
1) WPI
2) point to point inflation
3) CPI
1) WPI (Wholesale Price Index)
An index which measures or tracks prices of goods at stage before retail level.
Launched in 1952-53 (base year). On 14th May 2010, base year changed to 2004-05, now changed to 2010-11.
Now uses 676 items.
In 1993-94, number of items was 435.
It is the central measure of Inflation in India.
WPI related to Industrial goods determined on monthly basis while related to primary goods - agriculture , power , fuel on weekly basis.
Out of 676 commodities (493 = are industrial goods).
2) CPI (Consumer Price Index)
An index which measures prices of goods at the stage when it reaches to consumers.
3 types...
a) CPI (industrial workers) - 260 commodities.
b) CPI (non-manual urban workers) - 180 commodities.
c) CPI (agriculture workers) - 180 commodities.
3) point to point inflation
inflation to be taken exactly a year back, just to check the progress of a nation.
Suppose, on 28th july 2009 = Rate of 5 goods was = Rs 100,
now, on 28th july , 2010 = Rate of same 5 goods is = Rs 105
means, inflation is 5% (point to point basis).
India in talks with JP Morgan, others to join bond indexes - sources
Can somebody explain me how this will help in proper layman terms . It say about attracting billion of dollars and stuff didnt quite get it or if you can suggest a good read .
Thanks
@kuljeet_the_warrior yaar can u find some material which is SSC Tier 1 based pattern economics.
and hey, nice thread bro.......really appreciate ur efforts.😃
and hey, nice thread bro.......really appreciate ur efforts.😃
IBM lost a contract of CIA to AMAZON worth 600 million dollars..... 
Stocks, rupee gain as fears of US tapering stimulus ease. Stock markets rallied in expectation that the US Federal Reserve will not announce a tapering of its bond-buying programme, popularly known as QE (quantitative easing), this week.
This post is regarding Quantitative Easing based on which our Sensex roared yesterday : -
What is Quantitative Easing ?
Quantitative easing (QE) is an unconventional monetary policy used by central banks to stimulate the economy when standard monetary policy has become ineffective. A central bank implements quantitative easing by buying specified amounts of long term financial assets from commercial banks and other private institutions, thus increasing the monetary base and lowering the yield on those financial assets. Thereby low FII (foreign institutional investors) will flow in the country.
What is monetary policy ?
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment. Monetary economics provides insight into how to craft optimal monetary policy.
any discussion or comments are most welcome.
Inflation = Rise in prices of goods, leads to decrease in purchasing power capacity.
Types of Inflation
1) Creeping inflation = inflation up to 3%.
2) Walking inflation = inflation from 3% to 4%.
3) Running inflation = 4 to 10%.
4) Very high inflation = 50 to 100%
5) Moderate inflation = 5% to 30%.
6) High inflation = 30 to 50%.
7) Runaway inflation = over 100% (like in Zimbabwe).
Deflation = When inflation goes zero for a considerable period.
[On 6th June, 2009 inflation was (- 1.6 %) because prices of fuel/oil in international market was below $40 per barrel.]
Disinflation = Meant inflation is offset (balanced) by increase in wages or through DA.
Reflation = RBI measures to overcome inflation thro' circulation of money in the market.
Recession = considerable decline in demand for goods.
Depression = When production exceeds demands [when recession persists for prolonged period over 6 months is known as depression in the economy.]
Stagnation = no growth is the economy or less than 2-3 % growth.
Stagflation = Inflation + Stagnation.
Types of Inflation
1) Creeping inflation = inflation up to 3%.
2) Walking inflation = inflation from 3% to 4%.
3) Running inflation = 4 to 10%.
4) Very high inflation = 50 to 100%
5) Moderate inflation = 5% to 30%.
6) High inflation = 30 to 50%.
7) Runaway inflation = over 100% (like in Zimbabwe).
Deflation = When inflation goes zero for a considerable period.
[On 6th June, 2009 inflation was (- 1.6 %) because prices of fuel/oil in international market was below $40 per barrel.]
Disinflation = Meant inflation is offset (balanced) by increase in wages or through DA.
Reflation = RBI measures to overcome inflation thro' circulation of money in the market.
Recession = considerable decline in demand for goods.
Depression = When production exceeds demands [when recession persists for prolonged period over 6 months is known as depression in the economy.]
Stagnation = no growth is the economy or less than 2-3 % growth.
Stagflation = Inflation + Stagnation.
Factors lead to inflation
4 factors
1) Cost push factors
2) Demand pull factors
3) Importive
4) Access supply in the market
1) Cost push factors
Due to higher interest rates
↓
higher tariff rates
↓
higher cost of raw material
↓
higher wages
↓
higher cost of transportation.
So, higher cost of production is passed by Producer to Consumer.
2) Demand pull factors
When demand is more & supply is less. (Black marketing comes to play = inflation)
3) Importive
Increase in prices of oil in international market is bound to reflect domestic prices , as everything depends upon oil/fuel = transportation , cooking etc.
4) Access supply of money in market = a general reason of inflation.
4 factors
1) Cost push factors
2) Demand pull factors
3) Importive
4) Access supply in the market
1) Cost push factors
Due to higher interest rates
↓
higher tariff rates
↓
higher cost of raw material
↓
higher wages
↓
higher cost of transportation.
So, higher cost of production is passed by Producer to Consumer.
2) Demand pull factors
When demand is more & supply is less. (Black marketing comes to play = inflation)
3) Importive
Increase in prices of oil in international market is bound to reflect domestic prices , as everything depends upon oil/fuel = transportation , cooking etc.
4) Access supply of money in market = a general reason of inflation.
may not meet Wikipedia s notability guideline for stand-alone lists . reliable, secondary sources about the topic. If notability cannot be established, the article is likely to be merged, redirected, or deleted. (July 2012)
@kuljeet_the_warrior Saaar, thread suna pad gaya he ap ke bina. Kuch post kiya karo sirji, acha khasa gyaan mil jata he yaha se 
🍻🍻
🍻🍻Seigniorage: The difference between the value of money and the cost to produce it - in other words, the economic cost of producing a currency within a given economy or country. If the seigniorage is positive, then the government will make an economic profit; a negative seigniorage will result in an economic loss. 😃🍻
guys, I will start posting topics on Economics from 16th Dec, 2013.
ek meri taraf se
For practitioners of Schadenfreude, seeing high-profile investors losing their shirts is always amusing. But for the true connoisseur, the finest expression of the art comes when a high-profile investor identifies a bubble, perhaps even makes money out of it, exits in time - and then gets sucked...
With all due respect to whosoever has started the thread
A similar thread is already going on , please continue here :
hii, guys i am student of B.SC. agriculture so i am not very much familiar with economics term and their meanings so a lot of of time i feel difficult in understanding the issue related to economics such as equity , stock , etc i have difficulty especially understanding economics term .
@avinashkrjha : Please do the needful
Methods to control inflation
RBI provide to mechanisms to control inflation
1) Quantitative
2) Qualitative.
Quantitative Methods
Bank Rate
Rate at which RBI lends to other banks
It is referred as discount rate, it is rate of interest which a central bank charges on loans and advances that it extends to commercial banks.
CRR (cash Reserve Ratio)
Amount of funds that commercial banks have to keep with RBI.
If CRR increased, lending ability of banks reduced and cuts money supply in market means less investment , less growth rate.
If CRR reduced, means capital base of banking sector is increased.
SLR (Statutory Liquidity Ratio)
It is amount that a commercial bank needs to maintain in form of cash, gold or govt approved bonds (securities) before providing credit to its customers.
Repo rate
Launched by RBI in 1992.
rate (short term rate) at which commercial banks borrow from RBI in context of ant shortfall of funds. A reduction is rate helps banks to get money at cheaper rates.
Reverse Rate (1992)
Rate at which RBI borrows from other banks. If it is increased, RBI borrowing from high rate of interest.
OMO (Open Market operations)
Under which RBI sells or purchases govt securities in market.
MSF (Marginal Standing Facility)
announced on 3rd May, 2011. Effective from 9th May, 2011.
Always 100 basis point above the Repo rate.
[If repo rate = 5, reverse repo = 4, MSF = 6]
Qualitative Methods
Moral suasion
RBI provide to mechanisms to control inflation
1) Quantitative
2) Qualitative.
Quantitative Methods
Bank Rate
Rate at which RBI lends to other banks
It is referred as discount rate, it is rate of interest which a central bank charges on loans and advances that it extends to commercial banks.
CRR (cash Reserve Ratio)
Amount of funds that commercial banks have to keep with RBI.
If CRR increased, lending ability of banks reduced and cuts money supply in market means less investment , less growth rate.
If CRR reduced, means capital base of banking sector is increased.
SLR (Statutory Liquidity Ratio)
It is amount that a commercial bank needs to maintain in form of cash, gold or govt approved bonds (securities) before providing credit to its customers.
Repo rate
Launched by RBI in 1992.
rate (short term rate) at which commercial banks borrow from RBI in context of ant shortfall of funds. A reduction is rate helps banks to get money at cheaper rates.
Reverse Rate (1992)
Rate at which RBI borrows from other banks. If it is increased, RBI borrowing from high rate of interest.
OMO (Open Market operations)
Under which RBI sells or purchases govt securities in market.
MSF (Marginal Standing Facility)
announced on 3rd May, 2011. Effective from 9th May, 2011.
Commercial Bankss can borrow overnight up to one per cent of their respective NDTL
[NDTL = Net Demand and Time liabilities]
Always 100 basis point above the Repo rate.
[If repo rate = 5, reverse repo = 4, MSF = 6]
Qualitative Methods
Moral suasion
When the RBI Governor speaks on the markets - his opinions/decisions on the overall economy can send financial/Stock markets falling or flying.
Selective Credit Control
To manage allocation of certain funds rather than managing the close total credit of financial institutions.
Some1 tell about Bancassurance and its features. . PLEASEEEEE!??!! 😠😠
