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Deficit Financing and Inflation The dangers of creating money are sufficiently well known. Such a course means the depreciation of the existing currency and consequent inflation c prices. If carried beyond certain limits, it may completely undermine public confidence in the currency with catastrophic results. Deficit financing can therefore, be advocated only if there is an assertion of stable supplies of the necessary goods of consumption. The injection of amplified power of purchasing into ...
Published by Gazu Lakhotia 68 months ago in Economics & The Economy | +0 votes | 0 comments
Deficit Financing and Economic Development Nowadays, deficit financing is increasingly being used as an instrument of economic development in under-developed countries like India. We know that the basic problem confronting these nations is that population growing much faster than the rate of capital formation. If these countries are to provide full employment to their labor force, they need huge amounts of capital. Unlike the advanced economies, the problem facing under-developed countri...
Published by Gazu Lakhotia 68 months ago in Economics & The Economy | +0 votes | 0 comments
What is deficit financing? The concept of deficit financing was one of the discoveries of the Depression of the thirties of this century. In recent years, deficit financing has assumed further importance, since it has come to be recognized as a major source of finance for the economic development of under-developed countries. Meaning of deficit financing The expression 'deficit financing' is employed to indicate the direct accumulation to gross national expenses in the co...
Published by Gazu Lakhotia 68 months ago in Economics & The Economy | +0 votes | 0 comments
Factors Influencing Capital Formation Capital formation is not an automatic process. The rate of capital formation is different in different countries. This shows that capital formation is condi­tioned by certain factors. The following are the chief factors that govern capital formation in a country: — Savings Savings are done by individuals or households. They do saving by not spending all their incomes on consumer goods. When individuals or households save, they release resources ...
Published by Niitesh Mundra 69 months ago in Economics & The Economy | +1 votes | 0 comments
Capital Formation The root of the trouble of economic growth in a developing economy lies in a rapid growth of the speed of its capital investment so that it accomplishes a rate of development of production which goes beyonds the rate of population growth by a considerable margin. Simply with such a speed of capital investment will the standard of living start on to get better in an under-developed nation.
Published by Niitesh Mundra 69 months ago in Economics & The Economy | +1 votes | 0 comments
Meaning of economic development and factor obstructing economic growth Meaning of Economic Development Economic development, as the converse of under-development, means that a nation has an extremely urbanized economic organization. This, in turn, implies that it has an extremely resourceful organisation both of industry and of agriculture, an extremely urbanized credit and banking system and a sufficient growth of transport and communications.
Published by Niitesh Mundra 69 months ago in Economics & The Economy | +1 votes | 0 comments
Obstacles to economic growth The factors in charge for slow development of an economy may be generally classified as (1) Economic Factors, (2) Social Factors and (3) Political Factors Economic Factors to economic growth Amongst the economic factors we may talk about the following:— (i) Foreign control. The foreign leaders of a nation are mostly worried with the wealth of their own nation and they cruelly take advantage of the reserves of the nation they rule to attain their own...
Published by Niitesh Mundra 69 months ago in Economics & The Economy | +2 votes | 0 comments
Vicious circle of poverty A poor person is trapped in a vicious circle of poverty. As he isnÂ’t rich, he requires the support to flourish and as he doesnÂ’t have the means to flourish, he has to stay poor. The viscous circle is comprehensive. Shortage leads to inadequacy and inability to do well, and inadequacy and inability must end up in poverty.
Published by Niitesh Mundra 69 months ago in Economics & The Economy | +0 votes | 0 comments
In this article, I am attempting to show you why buying Copper is paramount, why betting low in all things in the first quarter or beginning will not allow you to lose. Historical points are brought to the reader's attention to show how inflation in most cases, always becomes hyper inflation. Also the merging currency of the Amero (Canada, Mexico and US currencies coming together) and its limited impact on our economy.
Published by Colethetruth 69 months ago in Economics & The Economy | +0 votes | 0 comments
Meaning of under developed economy This classification, although it spotlights consideration on an extremely significant feature of under-development, viz., deficiency, can by no means be measured sufficient. A nation may be poor and nevertheless not under-developed in relation to its reserves, if the assets turn out to be insufficient or insufficient; it might have fully urbanized its reserves and yet be amongst the poorest nations in the earth.
Published by Gazu Lakhotia 69 months ago in Economics & The Economy | +0 votes | 0 comments
Objectives of India's Five-Year Plans If we have a look at the Indian plans, it will give the reader a concrete idea of what the objectives of planning generally are in under-developed countries. India's First Five-Year Plan sought simply to set the stage for development proper. With that end in view it tried to tackle the urgent and immediate problems of food shortage and of shortage of essential raw materials like jute and cotton, rehabilitation of the war-worn transport system, th...
Published by Gazu Lakhotia 70 months ago in Economics & The Economy | +1 votes | 1 comments
Physical planning vs. financial planning Planning by Inducement Planning by inducement implies planning by controlling the market system. It engages no force but merely influence. Planning by inducement in addition shuns inflated administration. In planning by inducement, the schemer either sponsors manufacture or organizes price if it is planned to augment the use of a product. The first steps on the supply face and the chain on the demand region. Cheaper charge is an inducement for th...
Published by Gazu Lakhotia 70 months ago in Economics & The Economy | +1 votes | 0 comments
Essentials of Economic Planning Meaning of planning There is a lack of harmony amongst economists and biased thinkers as to the meaning of planning. Planning, in brief, may well be describes as visualizing, commencing, standardizing and controlling monetary action by the State as per the set main concerns with a outlook to attaining well distinct aims within a set time
Published by Gazu Lakhotia 70 months ago in Economics & The Economy | +0 votes | 0 comments
Meaning and Forms of Planning No accurate and generally adequate explanation can be presented. One of the most popular definitions is the one given by Dickinson, the making of key economic pronouncements—how much and what is to be created, how, where and when it is to be manufactured, to whom it is to be distributed—by the cognizant resolution of a determinate power on the base of a complete examination of the financial structure as a whole.
Published by Gazu Lakhotia 70 months ago in Economics & The Economy | +1 votes | 1 comments
Main Features of a Planned Economy If we have a look at the planned economies, say, Russian, Chinese or even Indian economy, we shall discover some characteristics. The formulation of the plan and its implementation call for a certain type of economic and administra­tive organization and a certain type of endeavor and set-up. It is only natural, therefore, that the planned economies reveal some common features.
Published by Gazu Lakhotia 70 months ago in Economics & The Economy | +0 votes | 0 comments
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