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 ...

  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. ...

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...

"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...

why is the Australian economy slowing down                                 A ustralian economy possesses the crown for the economy with no recession from past years. Australia is considering land with no depression. The Australian economy has recorded an uninterrupted growth from the last 27 years. The economy of Australia has even successfully overcome from the recession of 2008.  Many strong developed and underdeveloped economies have affected, but the Australian economy has held his ground in an adverse situation, and this is the dream of many economies. Australian Dollar has also shown stability in past years.  When you look at the Australian economy, it doesn't have a large economy like the USA or export-oriented economy like China, etc. which can help to have sustainable growth. When you look at the Australian economy it doesn't have any particular sector or factor which is respo...