India’s manufacturing PMI stood at a mere 27.4 in April 2020. It was 51.8 in April. The outbreak of the coronavirus pandemic and the subsequent lockdown pushed India’s manufacturing PMI to contract for the first time in 33 months. After making it through March relatively unscathed, the Indian manufacturing sector felt the full force of …
Purchasing Managers’ Index India survey- Explained Read More »
GDP is the total value of all goods and services produced in the economy in a given period of time. You may read: GDP Demystified for a better understanding of GDP. If we use the current prices of goods and services to calculate GDP, we get Nominal GDP. India’s GDP in the year 2016-17 was estimated to be Rs.1,52,51,028 …
What is the difference between Nominal and PPP GDP? Read More »
Derivatives meaning A derivative is a financial instrument that derives its value/ price from the value of another asset, known as an underlying asset. The common underlying assets are stocks, bonds, commodities, currencies, interest rates, etc. The basic types of derivatives are forward, futures, options, and swap. Forward A forward contract is a contract between …
Derivatives meaning – Forward, Futures, Option & Swap Explained Read More »
Balance of payments (BOP) The Balance of payments (BOP) is the accounting record of all economic transactions between residents of the country and the rest of the world in a particular time period. These transactions are made by individuals, firms, and the Government. Hence, the BOP is the record of a country’s exports, imports, foreign …
Balance of Payment (BOP), Current Account & Capital Account Explained Read More »
The Financial crisis 2008 or the Great Recession is the biggest economic event in the world after the Great Depression of the 1930s. This article explains the causes and consequences of the financial crisis in a very simplified way. [You may also read- The Great Depression of the 1930s explained] What is a financial crisis? …
The Financial Crisis 2008 Explained in Simple Terms Read More »
Yes, the move that was on the cards has finally been executed. No, I am not talking about Game of Thrones (Generic humour appeal at the start), but yes the newest member in the hall of fame for RBI governors. Dr. Urjit Patel becomes the governor of RBI, taking over the reins from the former, …
With the budgetary session looming close, ‘fiscal deficit’ is a term you are expected to hear multiple times. So, we decided to write a post to demystify the concept for our readers. The Fiscal deficit is the gap between revenues and expenditure of the Government. Simply put, when Government spends more than it earns, it …
Fiscal Deficit; Revenue Deficit; Primary Deficit; Fiscal Slippage Demystified Read More »