Explained: Tools of monetary policy
The tools of monetary policy refer to the tools used by the Central Bank (RBI in India) to meet the set objectives of price stability and growth of the economy. The tools used by the Central Bank for the above purposes are; Cash Reserve Ratio (CRR), Statutory Liquidity Reserve (SLR) Directed credit and administered interest…
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Characteristics of a Business Cycle and Phases of a Business Cycle
The Gross Domestic Product (GDP), which is the total value of goods and services produced in a country, keeps fluctuating over time due to expansion and contraction in economic activity. This experience of expansion and contraction in an economy from time to time is known as the business cycle. A business cycle is completed when…
Read article RBI launches PRAVAAH portal, the Retail Direct Mobile App and a FinTech Repository
On Tuesday, RBI Governor Shri Shaktikanta Das, launched the PRAVAAH portal, the Retail Direct Mobile App, and a FinTech Repository. These three initiatives were earlier announced as part of RBI’s bi-monthly Statement on Development and Regulatory Policies in April 2023, April 2024, and December 2023 respectively. PRAVAAH is a secure and centralised web-based portal. The…
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Explained: Regional Economic cooperation
Regional Economic cooperation refers to an agreement between groups of countries in a geographic region, to promote economic cooperation by reducing trade barriers and non-tariff barriers to the free flow of goods, services, and factors of production between each other. The objective of regional economic cooperation is to promote the welfare of the peoples of…
Read articleHicks-Hansen Synthesis: IS-LM Curve Model
From various theories like classical theory, loanable-fund theory, neo-classical theory of Pigou, and determining the rate of interest put forward from time to time, we have seen that all these theories suffer from various drawbacks and are indeterminate. The Keynesian theory considered only the monetary factors and the classical theory only the real factors as…
RBI notifies revised guidelines for foreign currency notes changing activities
In terms of Section 10 (1) of FEMA 1999, RBI may authorize Full Fledged Money Changers (FFMCs)/non-bank Authorised Dealers (ADs) Category-II to deal in foreign exchange as an authorised dealer, money changer, or off-shore banking unit or in any other manner as it deems fit. In terms of extant instructions, these authorized dealers may obtain…
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