Fiscal Policy Generally fiscal policy is the set of strategies that government implements or plans to use with certain activities such as the collection of revenues and taxes and expenditure that can influence the overall economic condition of the nation. A well written or planned fiscal policy can lead the nation to the steady path of the strong economy, increase employment and also maintains healthy inflation. Every country needs fiscal policy as fiscal policy plays a vital role on monitoring
particular is likely to occur when growth is above the long run trend rate and the aggregated demand increases faster than aggregated supply. China and India are two countries where this combination of strong economic growth and rising inflation has been seen in recent years. In 2010, China grew by 9.8% but her inflation rate was 4.9% and rising. India grew by 8.6% but her inflation rate was 8.3%. Persistently higher rates of inflation can then have negative effects on international trade performance
International Business Economics The recession and the credit crunch of 2008 have affected almost all the countries in the world. It has been known as one the worst financial crisis happened since the Great Depression of 1929 – 1930. This paper aims at comparing the economies of China and India in the view of the recession of 2008. India and China both are emerging economies of the 21st century. “The emerging market economies are characterized as transitional, which means that they are in the process
A GDP comparison of India and China China and India are the two giant’s economies of Asia, which are now regarded as the “success stories” for their massive economic development for the past two decades. On their way to economic growth they have more dissimilarities than similarities. The most common things among them are their ancient civilizations, population, covering substantial geographical areas and developing economies of the world. They both apparently benefited from globalization as well
and rapid declines in the policy rate (the very short rate) in late 2008 and early 2009. Considering the US, the UK, and Japan, did long rates fall as much around that time or less or more? In late 2008, many developed economies where in or close to recession, with growth slowing noticeably in the emerging economies. These events prompted an easing of monetary policy and expansionary fiscal measures in many countries (Reserve Bank of Australia, 2008). The policy rate is the target 'cash rate'
n political economy decisions in two countries: India & China Word Count: 1647 Contents Introduction 3 China 3 India 4 Economic Policies 4 FDI 4 GDP 7 Inflation 8 Current Account 9 Conclusion 10 Bibliography 10 Introduction The financial crisis, which began in late 2007 in US, went on to affect Europe and Asian counties. The economists were of the opinion that it would not affect the developing nations like China and India. Moreover as per the economists, these countries
the peak levels a couple of years ago. If oil prices stay at these levels, which of the BRICs (Brazil, Russia, India, China) do you think would benefit the most? Why? ℑ The countries that will benefit the most are China and India. China is the second largest importer of oil with a large population. It’s ability to consume more oil will be greater with a drop of oil prices. Also India will benefit from lower oil prices. With oil accounting for about a third of India’s imports, in combination with
The post-GFC expansionary monetary policy of Australia Background The global financial crisis (GFC) is begun with the collapse of Lehman Brothers in Sep. 2008, when a loss of confidence in stock investors of the value of sub-prime mortgages caused a liquidity crisis, resulting the global central banks injecting a large amount of capital into the financial markets and consumers ' confidence hit the bottom, according to McKibbin, W.J. (2009, p.1). The second phase of GFC stepped after the US bank crisis
Managerial Economics Table of Contents Introduction 2 Objectives 2 Analysis 3 Economic Analysis of India 3 Key challenges and recommendations 4 Long-run economic growth and impact of macroeconomic stabilization policy 5 Macroeconomic concepts related to international trade 5 Illustration 6 Conclusion 9 References 9 Introduction Broadly speaking, the modern economic science has two major components: microeconomics and macroeconomic. Compared to microeconomics, macroeconomics is
have these policies been? per capita income is national income/population.So the 1st and foremost reason is over population. The national income of India is progressing at a slow rate.This is because of 1.Defect in planning 2.Non development of industrial sector. 3.Lack of technological progress. The per capita income of India is lower than the percapita income of some developed countries.To find out the reason we may have to go back to the early fifties.After Independence, India adopted socialistic