Wan Manan Muda and Jomo Kwame Sundaram October 10, 2019 Two decades into the 21st century, all too many people still associate being ‘overweight’ with prosperity, health and wellbeing, mainly because being thin has long been associated with being emaciated due to hunger, undernourishment and malnutrition. Overweight and...
Article Shared by Let us make an in-depth study of the Mundell-Flemming Model. After reading this article you will learn about: 1. Meaning of the Mundell-Fleming Model 2. Main Message of Mundell-Flemming Model. Meaning of the Mundell-Fleming Model: The basic Mundell-Fleming model — like the IS-LM model — is based...
Article shared by : Some of the major items whether included or excluded in national income are as follows: 1. Construction of a new house. Yes, it will be included in the national income as it is a part of capital formation and leads to production of goods and...
C. P. Chandrasekhar and Jayati Ghosh It is only too evident that the Modi government is a strongly centralising one in many ways – and this is also clear from various fiscal moves. In 2015, it accepted the recommendation of the 14th Finance Commission to increase states’...
Prabhat Patnaik The Modi government has an unerring instinct for bungling in economic matters. It has come out with a “fiscal stimulus” for tackling the current economic slowdown that will actually make matters worse. After successive interest rate cuts which were predictably futile, it finally turned...
Article Shared by The problem of choosing an appropriate technique of production or technology arises when the LDCs have already decided on a particular project. Choosing between the alternative methods of production is one of the major problems that confront development planning. If labour (L) is more...
Article Shared by Allocation of resources is one of the central problems faced by all economies. Establishing criteria for investment of a nation’s resources are crucially important for poor countries. One of the most traditional of the investment criteria uses the capital- output ratio as a key...
Tejvan Pettinger This is a theory which estimates the likely utility of an action – when there is uncertainty about the outcome. It suggests the rational choice is to choose an action with the highest expected utility. This theory notes that the utility of a money is...
James Tobin (1965) presented a simple model of monetary growth which follows the Solowian model (which Tobin had independently developed in a 1955 model) in all respects plus one: the existence of government debt (net "outside" wealth). For our purposes, let us assume there is only one...
Tejvan Pettinger Definition of adverse selection: Adverse selection occurs when buyers have better information than sellers, and this can distort the usual market process. It can lead to missing markets as firms do not find it profitable to sell a good. Adverse selection explained A company selling life insurance...