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Methods of Exchange Control Paul Einzig in his book Exchange Control has mentioned as many as 41 different methods of exchange control. Broadly speaking, these methods may be classified into two types: direct and indirect methods.
Published by Gazu Lakhotia 231 months ago in Economics & The Economy | +0 votes | 0 comments
Indirect Methods of Exchange Control There are several indirect methods of regulating the rates of exchange. The most important indirect method is the use of tariff duties and quotas and other quantitative restrictions on the volume of international trade.
Published by Gazu Lakhotia 231 months ago in Economics & The Economy | +0 votes | 0 comments
Objectives and method of credit control The current financial system is a credit economy. Credit has assumed an increasingly wide significance in sustaining the base of the modern economic system. It is the blood line of current business. For that reason credit control is necessary for steadiness and methodical development of an economy.
Published by Gazu Lakhotia 231 months ago in Economics & The Economy | +0 votes | 0 comments
Economy can easily learned with meals that will have a big impact on personal finance.
Published by Roberta Baxter 73 months ago in Economics & The Economy | +16 votes | 9 comments
Fiscal Policy for control of Inflation The two wings of fiscal policy are government revenues and government expenditure. The government's fiscal policy can contribute to the control of inflation either by reducing private spending by increasing the taxes on private sector, or by decreasing the government expenditure, or combining both the elements.
Published by Gazu Lakhotia 73 months ago in Economics & The Economy | +0 votes | 0 comments
Monetary measures to control inflation Monetary Policy The main methods of controlling the credit creating capacity of banks are as follows: — (i) Manipulating the bank rate, i.e., the rate at which the central bank is willing to rediscount the eligible paper offered by the commercial banks. A rise in the bank rate will be followed by a rise in other money market rates of interest.
Published by Gazu Lakhotia 73 months ago in Economics & The Economy | +0 votes | 0 comments
Inflationary and Deflationary Gaps We know that equilibrium is not always at the full employment level. Rather it can be at a level when there is less than full employment. Thus no particular virtue need be attached to what we call the equilibrium point of employment or national income.
Published by Gazu Lakhotia 74 months ago in Economics & The Economy | +1 votes | 0 comments
Friedman's Quantity Theory of Money We are well aware of the Keynesian view of the theory of money and the manner in which monetary policy can work to make the economy expand. The Keynesian view is that an increase in M (money supply) will lead to lowering of the rate of interest, given liquidity preference schedule.
Published by Gazu Lakhotia 73 months ago in Economics & The Economy | +0 votes | 0 comments
Keynes contribution to the Quantity theory of money The new theorists, in particular the Keynesians put importance that the worth of money or the level of price level is actually a result of the overall income more than amount of money.
Published by Gazu Lakhotia 73 months ago in Economics & The Economy | +0 votes | 0 comments
Causes of Inflation Inflation By inflation, in common terms, we mean a general rise in prices. Conversely when talking about inflation, we are of the notion of an constant increase in prices rather than a steep increase in prices (which may be, for example, brought about by a bad weather leading to destruction of crops).
Published by Gazu Lakhotia 74 months ago in Economics & The Economy | +0 votes | 0 comments
What is the value of money? General Effects. Money cannot do its work efficiently if it changes in value every now and then. How risky would the cloth business-be if the length of the yardstick fluctuated while the quantity of cloth remained the same
Published by Gazu Lakhotia 74 months ago in Economics & The Economy | +0 votes | 0 comments
Uses and limitations of Index Numbers Uses of Index numbers Index numbers can be used for a number of purposes: (i) Index numbers are used not merely to measure changes in the price level or changes in the value of money. They can be used to measure any quantitative change.
Published by Gazu Lakhotia 74 months ago in Economics & The Economy | +0 votes | 0 comments
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