Pandemic and Inflation Subject : Economy Section : Inflation Context Inflation has risen around the world, across major economies. How did the pandemic lead to inflation? Supply constraint– cost push inflation led the surge in energy, food, non-food commodities, input prices and rising freight costs Lockdown– structural inflation Base effect-earlier lower inflation Pent […]
Crypto crashed Subject : Economy Section : Monetary Policy Context Bitcoin, the most dominant cryptocurrency around, is down more than 50% from an all-time high price of $68,000, which it achieved just last November. Concept: A stablecoin is a type of cryptocurrency that is typically pegged to an existing government-backed currency. A cryptocurrency […]
Sustaining FDI Subject: Economy Section: External sector Benefits of FDI: Economic development stimulation: FDI can stimulate a target country’s economic development and create a more conducive environment for companies, the investor, and stimulate the local community and economy. Easy international trade: Countries usually have their own import tariffs, which makes trading rather difficult. […]
Inflation Subject: Economy Section: Inflation Context: The world and India are witnessing a resurgence of food inflation. And with the UN Food and Agriculture Organization’s (FAO) food price index hitting new highs, it has reignited memories of the last great commodity inflation (from the mid-2000s till around 2012-13, briefly interrupted by the 2008-09 […]
LOU And FLCs Subject: Economy Section: External sector Context: The CBI found that Mr. Choksi’s companies were fraudulently issued 165 Letters of Undertaking (LoU). The value of 58 Foreign Letters of Credit (FLCs) were also enhanced in 2017 for payment to dummy overseas suppliers. Concept: What is a Letter of Undertaking (LoU)? LoUs […]
Custom Duty Subject: Economy Section: Fiscal Policy Context: To rein-in prices and preserve domestic supplies, the government today imposed stiff export duty on steel, steelmaking raw materials and intermediaries. It also waived import duty on coal. Details: An export duty of 15 per cent levied on steel, steelmaking raw materials and intermediaries. Import […]
External debt of India Subject: Economy Section: External sector Context: Against India’s current external debt to GDP ratio of 20 per cent, the estimated threshold level is between 23 percent and 24 per cent of GDP, indicating space for attracting more external debt inflows of $ 90 billion- says the RBI study on […]
Asian Clearing Union Subject: Economy Section: External Economy In view of difficulties being faced by exporters in getting payments from crisis-hit Sri Lanka, the RBI on Thursday allowed settlement of trade transactions in Indian rupee outside the Asian Clearing Union (ACU) mechanism. Details: In March, the government had guaranteed a term loan of […]
Interoperable cardless cash withdrawal Subject: Economy Section: Monetary Policy The Reserve Bank of India has said all banks, ATM networks and white label ATM operators may provide the option of interoperable cardless cash withdrawal at their ATMs. Details: National Payments Corporation of India has been advised to facilitate Unified Payments Interface (UPI) integration […]
Pricing of petroleum and LPG Subject: Economy Section: Monetary Policy Consumer Price Index (CPI) surged to an eight-year high of 7.79 per cent in April, while producers’ inflation based on Wholesale Price Index (WPI) crossed all-time high in the latest series at over 15 per cent in April. Recently Government took several steps […]