Financial Economics

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...

Currently, India and Pakistan’s relation is on the decline side in the past few weeks due to attack on CRPF soldiers killed in bomb blast in the Jammu and Kashmir. In response, the Indian air force attacked a terrorist camp in Pakistan. This caused a warlike, but the question arises how much war can affect Pakistan’s economy? Can does India create a crisis in Pakistan without announcing a war? Then my answer will be partial ‘Yes’ without announcing a war India can create a crisis in Pakistan. So let’s see how India can able to do it. Pakistan’s economy is not a self-sufficient economy; it depends upon other countries to run its day to day life and India can block this to create a crisis. 1. Stopping the exports –                                       The first step that Indian can take is by stopping the exports and imports to Pakistan. India and Pakistan trade was not sign...

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 ...

This is one of the most trending topics in the world, the country like Venezuela who said to have most significant oil resources in the world have this condition, and you already know the importance of oil in the economy, so why? A country like this is going through hyperinflation we are going to discuss this. So before we start let’s see what hyperinflation is.                                                                                       According to Oxford Dictionaries                              ...