National Income and GDP Concept
National income is the total monetary value of all goods and services produced by a country and income from abroad during a given period usually for one year. It is valued in terms of money. National income comprises GDP, GNP, NNP, PI, DI, and PCI. GDP (Gross Domestic Product) is the value of the goods…
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How did Monetary Policy in India Respond to the Global Financial Crisis?
In 2008-09, the financial stresses peaked following the failure of the US financial firm Lehman Brothers in September 2008. This triggered a panic in financial markets globally. The world has witnessed one of the worst economic and financial crises during 2008-09 since the great depression of 1929. India too faced a financial crisis beside the…
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The FRBM Act: FISCAL RESPONSIBILITY AND BUDGET MANAGEMENT ACT, 2003
The Fiscal Responsibility and Budget Management Act, of 2003, was enacted by the Indian government to institutionalise financial discipline, reduce India’s fiscal deficit, improve macroeconomic management and the overall management of public funds by moving towards a balanced budget, and strengthen fiscal prudence. The Act’s long-term objective is for India to achieve fiscal stability and…
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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…
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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…
Hicks-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…
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