Facts And Figures Of Global Economics

INFRASTRUCTURE Infrastructure refers to the support system of economic and social development of a country. Imagine life in the absence of the means of transport and communication; imagine life in the absence of educational institutes, hospitals and nursing homes; imagine life in the absence of electricity or oil & diesel! Absence of these things would only drive us to the primitive age when production was just for subsistence. Production activity did not yield surplus for growth and development. Infrastructure refers to support system of economic and social development of a country without which economic growth and social development would only remain to be primitive. Economic and Social Infrastructure Infrastructure is broadly categorised as: economic infrastructure, and social infrastructure. (1). Economic Infrastructure: Economic infrastructure refers to such elements of support system (like power, transport and communication) which serve as a driving force for production acti...

 Poverty Poverty is the inability to fulfil the basic requirements of life. The minimum requirements include food, clothing, housing, education and health facilities. If these minimum needs are not fulfilled, man undergoes pain and suffering. There is loss of health and efficiency. Sickness and disabilities render him helpless in all walks of life. Generation after generation he lives in poverty, grows in poverty and dies in poverty. Poverty breeds or multiplies itself. Relative and Absolute Poverty: How are the Poor Classified? Relative poverty and absolute poverty are the two main modifications of poverty. Following is their brief description: (1) Relative Poverty: It refers to poverty across different classes, regions or countries. The country or class of people whose level of living is low is treated as poor or relatively poor in comparison to the nation or class of people having high level of living. Relative poverty is also interpreted in terms of inequality of income within...

I NTRODUCTION: FISCAL POLICY The macroeconomics perspective, the focus is on the aggregate economic activity of governments, say, aggregate expenditure taxes, transfers and issues of government debts and deficits and their effects on aggregate economic variables such as aggregate output, aggregate employment, inflation, global economic growth etc. These, in case, form the subject material of fiscal policy. The connotation of fiscal policy as a strategy for achieving certain socio economic purpose was not perceived or widely acknowledged before 1930 due to the faith in the fixed role of government advocated by the then prevailing laissez-faire approach. Great Depression and the consequent instabilities made policymakers support a more proactive role for governments in the economy. However, later on, markets fail to achieve optimal outcomes and the need for government intervention to combat those market failures. In latest times, especially after being portended by the global financial c...

INTERNATIONAL CAPITAL MOVEMENTS INTRODUCTION  We find enormous increase in international movement of capital. This phenomenon has received a great deal of attention from not just economists and policy-makers but people in different walks of life including workers' organisations and members of civil society.  TYPES OF FOREIGN CAPITAL The term'foreign capital' is a comprehensive one and includes any inflow of capital into the home country from abroad and therefore, we need to be clear about the distinction between movement of capital and foreign investment. Foreign capital may flow into an economy in many ways. Some of the important components of foreign capital flows are: (1) Foreign aid or assistance which may be: (a) Bilateral or  direct inter government grants (b) Multilateral aid from many government who pool funds to a international organizations like the World Bank (c) Tied aid with strict mandates regarding the use of money or unitied aid where there are no such sti...

INTRODUCTION Money is at the centre of every economic transaction and plays a significant role in all economies. In simple terms money refers to the assets which are commonly used and accepted as a means of payment or as a medium of exchange or of transferring purchasing power. For policy purposes, money may be defined as the set of liquid financial assets, the variation in the stock of which will have impact on aggregate economic activity. Money has generalized purchasing power and is generally acceptable in settlement of all transactions and in discharge of other kinds of business obligations including future payments.  For example, a bill of exchange may also be a medium of exchange, but it is not money since it is not generally accepted as a means of payment.  Money is a totally liquid asset as it can be used directly, instantly, conveniently and without any costs or restrictions to make payments. At the fundamental level, money provides us with a convenient means to acces...

A Complete Information Of   National Income INTRODUCTION When we undertake the study of national economics, we are interested in macroeconomics aggregates such as, aggregate income, output, employment, prices, consumption, savings, investment etc. Just as there are accounting conventions, measure the performance of business, there are conventions for analyzing the economic performance of a nation.  National income means the net value of final  goods and services produced within the domestic territory of a country in an accounting year plus the net factor income from abroad.  The basic fundamental principle of national income is based on the following basis:                         In a nation Production=Sale=Income ∴ GDP:  The aggregate value of all the final goods and services produced in the domestic territory of the country during a period, generally a year. Domestic territory is defined to incl...