Financial Economics

The novel Corona Virus is also known as the COVID-19 is the newest member of the Corona Virus family. This virus has been first discovered in Wuhan, China. This COVID-19 now has spared worldwide and impacted around 787,000 and 38,540 casualties have been reported (Till the date). This virus has been reached on every continent of the globe. Europe has now become a new battleground. People are dying daily and WHO has declared coronavirus as Pandemic. As the world is trying to revive from this virus, the world economy is starting to feel the impact of the coronavirus. The developed economies along with the developing economies all are facing recession. As per experts, the worst is yet to come. Many people are comparing this recession with the recession of 2008. As per the ILO (International Labour Organisation) almost 25 million people are likely to lose their jobs due to the crisis. So how a virus lead the world economy into crisis and cause an axe on 25 Million people job? In th...

Devaluating Yuan   A Masterstroke by China   I have been criticizing China for their aggressive international policy, but one thing I would like to appreciate is their economic policy for handling of their currency in the global market. In the past and currently, many countries are worried about decreasing value of their currency, but China can devaluate Yuan without affecting their economic situation. The economies of those nations have shown an adverse effect, but China is on raising aside. So how did the Chinese economy is not only able to survive but also able to grow at a high pace? What are those steps that help China to achieve this? And how devaluating Yuan helped China? I will try to answer these questions in this blog To understand this, first, we have to understand the difference between the Devaluation of currency and Deprecation of currency. Devaluation of currency – ...

The world was in a shock when it heard about a Boeing 737 Max had crashed in Ethiopia, and this crash killed 157 people. After this crash, some strong steps had taken by many countries, but the question arises, how much this will hit badly to Boeing. In this blog, we will see how economical it will affect Boeing.   Boeing 737 Max is a relatively new plane introduced in August 2011, and it performed its first flight in January 2016. It is a fourth generation aircraft which cost from $99.7 million to $134.9 million for a unit. They consider this plane a modern plane. It is not the first time that a plane has crashed and people died if but it is rare that an aircraft manufacturing company is to be directly blamed for the accident. Here, Boeing is in the fault because of the same model Boeing 737 Max 8 has crashed twice in five months killing all approx. Three hundred forty-six people on board and the pattern was similar in both planes as both crashed within 15 minutes of take-o...

China Pakistan Economic Corridor (CEPC) is an initiative taken by a Chinese and Pakistani Govt. It a part of China’s One Belt One Road initiative (OBOR), CPEC is creating to boost trade between China and Pakistan and by this route, China can by-pass oceans. The CEPC plan involves constructing a network of transport, energy, industrial and agricultural projects that will stretch around 2,700 KM. from Gwadar port in Pakistan to Chinas Xinjiang. CPEC can help Pakistan to increase its export and boost its economy, as the trade between China and Pakistan can become more comfortable. It will connect two ports of Pakistan with China via roads and rails. CPEC will make across Pakistan and connect to China. So why did these projects will create problem to Pakistan we will discuss this in the Blog. 1.      Overspending on CEPC –                                         ...

The US and China are the top two economies in the world under a trade war. The US has started this due to Trade imbalance between the two countries. The US is facing a trade deficit due to more import and less export to China. This will be harmful to The US in the long run. Due to a trade war, the US has imposed a $200 Billion Tariff on China and in return, China has imposed a $60 Billion (Till the date) Many of you may have a question of how this trade war will be a golden opportunity for India? There is a gap created in both economies that India can fill by exporting its goods and services. Let’s understand 1.      The US–             The US is a big country with people with a high standard of living. Due to a trade war, Chinese goods will be more expensive than earlier. So India has to produce products to concentrate on these markets first.    Following are goods which India can take advantage.  The US im...