indiashastra

2022-11-24 14:56:32 LIBERALISATION
— Process whereby a state lifts restrictions on some private individual activities.
— Occurs when something which used to be banned is no longer banned
— Or when government regulations are relaxed.
— It means to free the economy from the direct and physical control imposed by the government.

PRIVATISATION
— Converting public companies into private companies
— By Withdrawal of government ownership or management
— OR Outright sale of government companies

GLOBALISATION
It means integration of the economy of country with world’s economy.

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2022-11-23 18:38:38 Join Secure Prelims 2023 For All Revision Notes —> https://indiashastra.com/product/secure-prelims-2023-november/ ओपन / कमेंट

2022-11-23 16:44:32 INFLATION TARGETING

- Monetary policy
- Central bank sets a specific inflation rate as its goal
- New Zealand was the first country to adopt it
- Committee headed by Urjit Patel recommended -
- Inflation Targeting based on CPI
- Flexible inflation target to be set by GOI once in every 5 year
- It will be official goal of RBI
- The target being set is 4% with a +/- 2% band. ओपन / कमेंट

2022-11-23 14:14:35 Wholesale Price Index

1. It shows the general role of inflation in the economy
2. Based on wholesale prices of selected good (not services) from selected market
3. Goods cost cheaper in wholesale market than retail shops
4. Every commodity first goes to wholesale market before reaching the public
5. WPI takes into account 697 commodities
6. It is constructed/ estimated by the office of economic advisor
7. Department for promotion of industry and internal trade (DPIIT)
8. Not affected by any change in the fiscal policy
9. Estimated at monthly intervals (till 2009 it was weekly)
10. Indirect taxes are not included (Since 2017)
11. WPI food index was introduced (in 2017)

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2022-11-23 12:04:37 INFLATION
- Persistent increase in price level

DISINFLATION
- Reduction in rate of inflation without any adverse impact on national income output employment etc.
- Price level increases but at lower rate
- Desirable to some extent

DEFLATION
- Persistent decrease in price level
- inflation rate becomes negative
- Opposite to inflation ओपन / कमेंट

2022-11-23 00:12:03 Consumer Price Indices (CPI) measures change over time in general level of prices of goods and services that households acquire for the purpose of consumption.The Price Statistics Division (PSD) of the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) started compiling Consumer Price Index (CPI) separately for rural, urban, and combined sectors on monthly basis with Base Year (2010=100) for all India and States/UTs with effect from January 2011. It revised the Base Year of the CPI from 2010=100 to 2012=100, incorporating many methodological improvements in consonance with the international practices with effect from January, 2015. ओपन / कमेंट

2022-11-23 00:08:41 CHALLENGES THAT GOVERNMENT FACES WHILE CONTROLLING INFLATION?

1. Supply side measures (ex. subsidies, MSP, restrictions on export etc.) show result only in long run
2. Government does not control Crude Oil prices
3. If government reduces expenditure it can adversely affect development activities
4. If government follows dear money policy banks won't lend much and firms will be starved of investment ओपन / कमेंट

2022-11-22 22:12:21 ओपन / कमेंट

2022-11-18 17:40:47 1939-1947-modern-india-indiashastra ओपन / कमेंट

2022-11-18 17:40:47 I ओपन / कमेंट