Keynes’ Liquidity Preference Theory of Rate of Interest

The Liquidity Preference Theory, proposed by John Maynard Keynes, explains interest rate determination based on people’s preference for liquidity. The book “The General Theory of Employment, Interest, and Money,” written by J.M. Keynes was published in 1936. According to the Liquidity Preference Theory, the interest rate determination is based on people’s preference for liquidity. The…

What are the causes of inflation?

Inflation is caused by a variety of causes such as increase in wages, increase in the price of raw materials, increase in taxes, decline in productivity, supply chain disruptions, rising fuel prices, increase in money supply etc.  The main causes of inflation can be grouped into three broad categories viz. Demand-pull inflation, Cost-push inflation, and…

UPI ATM: Check how to withdraw cash from ATM without debit card

Bank customers can now withdraw cash from ATMs without using physical cards. Even if you do not hold debit cards from your bank, still you can easily use this facility to withdraw money. Multiple banks in India have introduced interoperable cardless cash withdrawal (ICCW) enabled ATMs. The cash withdrawal transaction will be facilitated through a…

Four types of economic systems explained

Economic systems can be classified as Traditional Economies, command economies, market economies, and mixed economies. Traditional Economy: A traditional economy, as the name suggests, is based on a traditional approach based on ancient rules and is the most basic type of economy. Traditional economies are subsistent economies, production is aimed at self-sustenance—they consume whatever they…