Financial Economics

  The Indian economy is facing Inflation during the Recession? Inflation at 6.93% even at GDP record -23.9%   India is a third world country. It does not possess the money or the resources that other countries across the globe enjoy. Then the Indian economy has blossomed in the past and is currently in the top 6 economies in the world. The world is expecting the Indian economy to be in the top 3 economies in the world in half-a-century or less. COVID-19 has emerged in late 2019 and spread across the globe like wildfire. It has impacted not only developing but also developed countries. Many nations have imposed lockdowns to stop spreading the virus but it has shown adverse effects on the economic activity of the countries. Restrictions imposed in India have also shown the same output. Very few people are allowed to travel or work. As a result Demand contracts and those without enough labour output for business also shrunk. All these activities make the idle recipe of Recession and it ha

  Economic recovery after COVID-19 crisis Types of economic recoveries It has been almost over a half year has elapsed from first-ever novel coronavirus case recorded in the People’s republic of China. In this, a couple of quarters the world had witnessed a bunch of unexpected scenarios which had directly or indirectly affected the normal life of Homo sapiens.  COVID-19 has claimed 602K lives and infected over 14 million people across the globe. The curve shows no signs of slowing down in the coming month or so. As the virus is highly contagious governments have to impose strict lockdowns in their respective countries.  This result in loss of revenue to the firms and people start losing their jobs. Many firms have filed for bankruptcy whereas many firms have asked for govt. help to sustain the current crisis. As a wise man said, every cloud has a silver lining. The cases in a bunch of nations seem to slow down and authorities are gradually opening its economy.  Governments have p

Helicopter Money C oronavirus has shown its impact on the world economy. The lockdown imposed by nations has savoury depleted economic activity. Thus the world is in recession. To support the economy, many countries have proposed relief packages. In this scenario, monetary policy is on the rise, i.e. Helicopter Money .  Helicopter Money is a concept used by economists to boost the economy of a country. To understand helicopter money and how it can help revive an economy, let’s first understand what is helicopter money. Helicopter money meaning:- This helicopter money was first introduced by the noble price winner economist Milton Friedman in 1969 in his research paper “The Optimum Quantity of Money”. This concept was focused upon raising liquidity in the economy to counter the recession by provoking people to spend more which will boost the demand for a product or service which then can lift the economic output which will help the economy get out of recession. In simple words, the gov

How is India proliferating its Foreign Exchange Reserve?     M oney is at the core of every economic activity in the world. Governments need cash to run daily activities. Authorities usually raise funds either by capital gain or revenue gains, i.e. by selling goods and services or taking out loans. Nations usually hesitate to acquire loans as countries have to pay interest etc. And only apply for the loan for a longer period. New Delhi uses  Indian foreign exchange reserves  (made up of Indian foreign exchange or  Indian foreign exchange markets) to tackle short term needs. Thus, most of the Govt. Tries to use funds from revenue gains, but in the current coronavirus, crisis authorities are not having an adequate amount of reserves thus nations are now turning their attention to their foreign exchange reserves to counter its requirement. Thus, eventually, countries’ foreign exchange reserves are plummeting rapidly. The Kingdom of Saudi Arabia, Republic of China (Taiwan) and Hong Kong