Financial Economics

  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. ...

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...

"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...