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
The classical theory of the rate of interest
Economists like Ricardo, J. S. Mill, Marshall, and Pigou developed the classical theory of interest which is also known as the capital theory of interest, the saving-investment theory of interest, or the real theory of interest. In the classical theory, the equilibrium rate of interest is the one that equals the supply of loanable funds…
Read article
RBI announces premature redemption of Sovereign Gold Bonds @ ₹7296/-
The Reserve Bank of India (RBI) has declared the early redemption price for Sovereign Gold Bonds (SGBs) from the SGB 2017-18 Series IX-Issue date of November 27, 2017.The redemption price of SGB shall be based on a simple average closing gold price of 999 purity of the previous three business days from the date of…
Read article
Impact of Inflation on the Economy
In an inflationary atmosphere, unevenly rising prices inescapably reduce the purchasing power of some consumers, which can lead to erosion of real income. Some people, who purely live on interest income such as retirees, may find it challenging to keep up with rising prices, potentially diminishing their purchasing power. When prices rise, each unit of…
Read article
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…
Make UPI payment without using internet
Yes. UPI can be done without the internet. Think there can be situations where we desperately need to make a payment, but the internet connection doesn’t work. You need not worry, you can make UPI payments without the internet by dialing *99#. This service can be availed on any type of phone. It works across…
Read article