Macroeconomic theory and evidence
In April, India saw a considerable rise in wholesale prices, hitting a 13-month peak at 1.26%. This uptick stresses the mounting inflationary burdens on businesses nationwide. Therefore, the Wholesale Price Index…
The concept and practice of fiscal responsibility entail the judicious management of financial means, the maintenance of balanced budgets, the limitation of spending, and the pursuit of sustainable debt. It is…
The Central Banks implement monetary policy, aiming for maximum employment and economic growth alongside inflation control and stability. This careful equilibrium is vital for the economy's well-being. To maintain this balance,…
Central banks worldwide jointly possess over $21 trillion in assets, pivotal in their monetary policy mandates. This substantial amount underscores the fundamental importance of monetary policy in the orchestration of economic stability…
Fiscal policy involves the strategic manipulation of governmental expenditures and tax structures to alter economic trajectories. In essence, governments use several instruments of fiscal policy to achieve varied goals and…
The 1930s Great Depression saw U.S. unemployment peak at 25%, forcing millions into bread lines for sustenance. Today, fiscal policy represents a crucial economic management approach for governments, deploying taxation and…
A recent study examined 17 countries across 180 years, unveiling an intriguing fact: 65 out of 73 deflation episodes did not trigger an economic decline. This discovery, hence, challenges long-standing…
Cost-push inflation, a phenomenon capable of raising prices by huge amounts, signifies a dramatic shift in economic dynamics. It manifests when the overall price levels elevate due to escalations in labour…
It is vital to recognize that the Central Banks often target a consistent 2% inflation rate. This is to bolster ideal job conditions and stable prices within the economies. At its…
Inflation, far from being a mere statistic, acts as a powerful force reshaping economic terrains. In the United States, for instance, the Consumer Price Index for All Urban Consumers (CPI-U)…
Stagflation is a rare economic phenomenon characterized by high inflation and high unemployment, accompanied by stagnant economic growth. Here, we will further explore its meaning and significance, its causes, and…
The Phillips curve is a graphical representation of the inverse relationship between inflation and unemployment. The curve is named after economist A.W. Phillips, who first observed this relationship in the…
The subject matter of Economics is broadly divided into two sub-fields: microeconomics and macroeconomics. Every topic, theory or application in Economics can be broadly classified into these two branches. Although…
Investment decisions of any firm and in the economy as a whole depend on a variety of factors. Investment involves understanding the effects of lags, future expectations and also the…
The accelerator theory explains the relationship between change in output or income and the rate of investment. In this theory, a change in income or output causes a change in…
