INITIAL PUBLIC OFFERING Subject : Economics Context : The initial public offering (IPO) of India’s largest insurance company LIC is likely after October this year, a top official said. Concept : Government had introduced the legislative amendments required for disinvestment of a stake in Life Insurance Corporation of India (LIC) and IDBI Bank […]

    WASHINGTON CONSENSUS Subject : Economics Context : The Budget  marks an important departure from one of the key tenets of the Washington Consensus, the framework for market-oriented economics which has dominated policy making in most parts of the world Concept : The Washington Consensus is a set of 10 economic policy prescriptions by […]

    PEER TO PEER LENDING Subject: Economics Context: Bank deposit rates have eased, and fixed income mutual fund running yields (portfolio YTMs) are much lower than earlier. In this situation, investors looking for relatively higher returns can eye an avenue known as peer-to-peer (P2P) lending. Concept: Peer to Peer Lending According to the RBI […]

    CONTINGENT LIABILITIES Subject: Economics Context: The CAG audit report on Kerala finances for 2018-19, tabled in the Assembly on January 18, stated that off-budget borrowings of the KIIFB are unconstitutional. Concept: The government is of the view that as it is providing a guarantee for principal and interest for the loans received by […]

    DUTCH TULIP BUBBLE BURST Subject : Economics Context : Now, almost exactly 385 years and another pandemic later, Wall Street waits to see how long it will take for history to repeat itself. Concept : Shares of video game retailer GameStop Corp have soared 1,625% since the start of January. Driving the rally […]

    COUNTER CYCLICAL FISCAL POLICY Subject : Economics Context : CEA says it is time to switch fiscal gears from cautious stance to ‘counter-cyclical’ push. Concept : Counter-cyclical fiscal policy refers to the steps taken by the government that go against the direction of the economic or business cycle. Thus, in a recession or […]

    REGULATORY FORBEARANCE Subject : Economics Context : The Economic Survey 2020-21 has prescribed an early withdrawal of the regulatory forbearance that was adopted in the wake of the pandemic to ward off the threat of financial sector failures impacting the real economy. Concept : Regulatory forbearance A regulatory policy (i.e., a policy implemented […]

    ECONOMIC SURVEY PREDICTION Subject: Economics Context : After an estimated 7.7 per cent contraction in 2020-21, the Finance Ministry’s Economic Survey projects that India’s real GDP would record a growth of 11 per cent in 2021-22. Concept: The nominal GDP growth has been estimated at 15.4 per cent, implying an assumption of 4.4 […]

    EXTERNAL FINANCING/DEBT Subject : Economics Context : The Budget is expected to turn to external financing of the fiscal deficit during FY22. The gross marketing borrowing, however, is likely to be less than the enhanced amount for the current fiscal. Concept : It refers to money borrowed from a source outside the country. […]

    QUANTITATIVE EASING Subject: Economics Context: RBI’s calibrated measures will likely be able to address the issue of an increase in demand for funds from both the govt and the private sector in FY22. Concept: Quantitative easing (QE) is a form of unconventional monetary policy in which a central bank purchases longer-term securities from […]