Financial Economics

"Bad Bank" proposal for India and bad bank list   Why India should not create it. T he banking industry is the core of any economic activity. Banks mostly rotate around the money, which acts as blood in the economy. A healthy banking system can give a boost to an economy and vice versa. Thus having a well-organised banking system becomes a need, and many nations across the globe are taking extra precautions to keep the banking system healthy. But as we know, nothing is perfect. There are many flaws and loopholes in this system which can hurt the economy in the long run. One of the biggest problems in the banking sector is the bad debt or frequently known as NPAs i.e. Non-Performing Assets. These are the loans given by any financial institution (There are many institutions but in this scenario, we will only consider the banks) to a person or a firm which fails to repay it. These NPAs are hazardous to the banking system. Bad debt should be less than 4% to 5...

How can Venezuela counter Hyperinflation? In my last blog I have discussed Venezuela’s hyperinflation, and what are the reasons for it, now I am going to talk about how Venezuela can counter this. These are my personal thoughts. Many of you can have a contrasting view than me. Countering inflation is not easy it and steps taken to control it will not show its effects on economy quickly. To counter the situation, I divided this into two parts. The first thing the Govt. should stop spreading inflation and after that hyperinflation can be lowered. 1.       How to stop spreading of Inflation –                                                            The first aim ...