Financial Economics

Australia holds a crown for a no crisis economy from past many years, Australia is also ranked in fewer unemployment rates, and ranked 10 th at world’s happiest country. As you know about a housing bubble which was burst in the USA in 2007 and it causes the world for the great recession. So why and how Australia is going to face this same scenario in upcoming years and does it going to be as bad as like the USA or going to be a smooth landing? I am going to talk about this on this blog. To understand this let’s first see what a housing bubble is. In simple words, the property value is raising, and at a point, it is reached where the average income of a person is less than 1/3 rd of property prices in a year, till 1/3 rd there is no problem, but when prices rise above this, then it is a huge problem. It is a situation when an increase in supply tops the demand for houses, and many owners have bought more loan than the worth of their home. The biggest example is ...

India becomes the 6 th largest economy (Regarding Nominal GDP) in the world. This news is on the headline in the last couple of days, but we really did it? Let’s talk about this on this blog. This news is first declared by IMF in April, and now World Bank also declared it. India’s GDP is $2,597 Trillion compare to France’s GDP is $2,582 Trillion. So statically India is in front by a minimal amount, but there is no reason to celebrate this as in many other terms we are still way behind France and other Super Powers to understand this we will talk about different aspect of the indicators 1.       Per Capita Income                                Per capita income measures the average revenue earned per person in a given area.  Per capita income shows peoples earnings. In this India is way back compared...

Roads are everyday things nowadays but how such a common thing can actually affect the Economic Development? And how it affects our Financial Economics? These questions we are going to discuss in this blog. “US doesn’t have good roads because it’s rich but rich because it has good roads.” -           Henry Ford  As Henry Ford says, the road is used as a median for economic development. Good drives can lead towards Economic Growth. That’s why while studying economics many books focus on public expenditure and deficit budget. Government deficit budget has importance in developing country. So how can we achieve economic development by just developing roads? We will divide it into two parts i.                     Business use ii.                   Nor...

In an earlier blog we discuss the manufacturing sector, and how it's performing under GST now in this blog, we will talk about the Service sector. As we discuss earlier service sector is contributing almost 50% of GDP nowadays, and it's been the most successful sector after LPG and its been predicting that it will continue to rise shortly. Indirect taxes have always been contributing more than direct fees to Govt. revenue. Service solely added a significant contribution in charge also. Service sector not only dominate in GDP but also attracts foreign investment in the economy, Service sector also provided a significant amount of employment in the country. The GST council has decided in its 22nd meeting that presently, anyone making inter-state taxable supplies except inter-state job worker is compulsorily required to register irrespective of turnover. It has now been decided to exempt those service providers whose annual aggregate turnover is less than Rs. 20 Lakh ( Rs. 10...