A student called Sankalp asked us this question and as apprehended by him, this is not that stupid a question. Simply, why does the RBI not choose to simply print more money instead of thte country taking more loans from the IMF and world bank. Well, its a good idea in a perfect world but…

As requested by John, we are explaining the impact of Capital inflows on Exchange Rate, Inflation and Stock Market Index. When more capital flows into the country, the currency appreciates in value and the inflation increases. This is because as the the supply of more dollars in the economy increases, it is bound to decrease…

As requested by Payal, we are explaining the different rates in monetary policy used by RBI Repo (Repurchase) Rate Repo rate is the rate at which banks borrow funds from the RBI to meet the gap between the demand they are facing for money (loans) and how much they have on hand to lend. If…

We had received a query from a student, Neha in which she could not understand the meaning of an Economic Times article. http://economictimes.indiatimes.com/Market_News/VAT_rate_Exporters_upset_with_Centre/articleshow/2757378.cms The meaning is explained as follows: Refund of any tax is the refund of overpaid taxes from the government to the taxpayer. Refunds are due when the taxpayer has been over-withholding or…

We received a query regarding the Fed cut and its possible impact on the Indian Economy. So we are posting a response to this question. Any doubts regarding this topic, you may ask us immediately. Interest Rates and their Role A Basis Point is 1/100th of of one percent. A Basis Point is generally used…

We understand that a lot of students, especially from science background face a great difficulty in understanding news/issues of economy. The most common complaint we have come across is that terms used in the news/articles are difficult to understand and so is the implication of a certain event. So we have decided to come up…