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…
Read article
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…
Read article
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…
Keynes’ Liquidity Preference and other theories of interest
(This article elucidates Keynes’ Liquidity Preference Theory of Rate of Interest, Money Demand Determination of Rate of Interest: Equilibrium in the Money Market, Effect of an Increase in the Money in Money Demand or Liquidity Preference Curve, The Liquidity Preference Theory, proposed by John Maynard Keynes, explains interest rate determination based on people’s preference for…
Read article