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Yes, Am aware of the available thread for clearing doubts, but i believe that we should have domain specific threads for better usefulness of such threads.
"Segmenting-Targeting-Positioning" or you can add D as well "kotler-Baba".
Economic survey mentioned two points: 1.) The reason of Inflation is protein focussed diet of Indian middle class 2.) Percentage of total expense for food is decreased,
the percentage of both, the rise of protein oriented diet in normal food and the fall in the contribution of expenses towards food in somehow same,
so what is the reason of Inflation? :-/
Some other sources on internet says that its not the consumption but the supply thats causing the Inflation,
Please share sites/video links that help us understand the basic concepts of Economy. Also welcome are the suggestions of any book on Economy other than the one by Ramesh Singh (or PD special issue). Any book that makes our concepts clear with more examples ? Thanks a lot in advance.
Economic survey mentioned two points: 1.) The reason of Inflation is protein focussed diet of Indian middle class 2.) Percentage of total expense for food is decreased,
the percentage of both, the rise of protein oriented diet in normal food and the fall in the contribution of expenses towards food in somehow same,
so what is the reason of Inflation? :-/
Some other sources on internet says that its not the consumption but the supply thats causing the Inflation,
so what is the actual reason?
Provide your views
Reasons for high food inflation.
1) demand side Shift in dietary pattern towards more protein rich diet. ( but this doesn't correlate with excruciatingly slow decline in the malnutrition indicators - IMR,MMR etc) Rising per capita income.
2) supply side Rising rural wages ( some economists blame MGNREGA) Ever increasing MInimum Support Prices to take care of higher input costs viz. fertiliser, electricity, irrigation , farm wages ( wage price-inflation spiral) Poor supply chain infrastructure - cold Storage, warehousing, transport
Please share sites/video links that help us understand the basic concepts of Economy. Also welcome are the suggestions of any book on Economy other than the one by Ramesh Singh (or PD special issue). Any book that makes our concepts clear with more examples ? Thanks a lot in advance.
For basic concepts i will suggest old NCERTs 11th and 12th both, they were good and more inclined to Indian issues.
For Indian Financial System, RBIs FAQ sections are really good.
I can be more accurate if you can state some doubts.
@Vazu Thanks for the suggestion. I will throw here my economics doubts as and when I come across them. I hope gentleman like you will help. Thanks again for your positive gesture. I appreciate it. Take care.
Economic survey mentioned two points: 1.) The reason of Inflation is protein focussed diet of Indian middle class 2.) Percentage of total expense for food is decreased,
the percentage of both, the rise of protein oriented diet in normal food and the fall in the contribution of expenses towards food in somehow same,
so what is the reason of Inflation? :-/
Some other sources on internet says that its not the consumption but the supply thats causing the Inflation,
so what is the actual reason?
Provide your views
Reasons for high food inflation.
1) demand side Shift in dietary pattern towards more protein rich diet. ( but this doesn't correlate with excruciatingly slow decline in the malnutrition indicators - IMR,MMR etc) Rising per capita income.
2) supply side Rising rural wages ( some economists blame MGNREGA) Ever increasing MInimum Support Prices to take care of higher input costs viz. fertiliser, electricity, irrigation , farm wages ( wage price-inflation spiral) Poor supply chain infrastructure - cold Storage, warehousing, transport
IMO, India is lacking on supply side and inflation can be cured only through increasing agriculture production,
Indian Per capita income growth rate was higher in 2004-2010 but the inflation was less than now where the growth rate is low (5-6%), so rise in income doesn't as cause lacks suitable base.
Further, i think its lack of parallel growth in agriculture and supply chain industry w.r.t growth of population which is causing the inflation, more people are chasing same amount of output.
Lastly, I think currency devaluation also played a decisive role in it, India isn't a export economy like China, so the cost in rupee increased while there was not so much change in dollar terms in International market.
Just some Opinion, Guys share your view.
Doubt: If UPSC asks what's the reason for Inflation, will it be ok to use Economic survey's POV which doesn't seem so accurate?
Doubt #2: How does Quantitative Easing(QE) in United States affect money supply in other countries? QE leads to increase in dollar supply, so dollar should lose value with respect to other currencies(I'm not sure), but I don't see why this would lead to rupee depreciation, a reason often mentioned in newspaper for rupee's downfall.
@breakingbad Answer to the query 1: A country apparently gets the money flow on account of US QE. Indian companies borrow on a large scale from US as the borrowing becomes relatively easier owing to QE. We get 'dollars' but this dollars are injected into system by Indian companies and not by govt. Or Reserve bank of India so virtually it does not affect foreign reserves of our country. Answer to the query 2: Yes, money gets injected into the US financial system but then they have enough foreign reserves so relative fall in US dollar value is minimal. Answer to the query 3: If US economy grows on a stable scale on account of QE then there would be more demand of US dollars. Why more demand ? Because the investment scenario becomes more friendly there on account of QE. More demand of US dollars ----> Rupee falls further leading to its depreciation. - I hope it helped.
Doubt #2: How does Quantitative Easing(QE) in United States affect money supply in other countries? QE leads to increase in dollar supply, so dollar should lose value with respect to other currencies(I'm not sure), but I don't see why this would lead to rupee depreciation, a reason often mentioned in newspaper for rupee's downfall.
It is not QE that causes rupee deprecation, but the fears of the reversal of QE by the US Fed that are partly responsible for the depreciation. So, there is no contradiction.
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Comments
Economic survey mentioned two points:
1.) The reason of Inflation is protein focussed diet of Indian middle class
2.) Percentage of total expense for food is decreased,
the percentage of both, the rise of protein oriented diet in normal food and the fall in the contribution of expenses towards food in somehow same,
so what is the reason of Inflation? :-/
Some other sources on internet says that its not the consumption but the supply thats causing the Inflation,
so what is the actual reason?
Provide your views
Also welcome are the suggestions of any book on Economy other than the one by Ramesh Singh (or PD special issue).
Any book that makes our concepts clear with more examples ?
Thanks a lot in advance.
1) demand side
Shift in dietary pattern towards more protein rich diet. ( but this doesn't correlate with excruciatingly slow decline in the malnutrition indicators - IMR,MMR etc)
Rising per capita income.
2) supply side
Rising rural wages ( some economists blame MGNREGA)
Ever increasing MInimum Support Prices to take care of higher input costs viz. fertiliser, electricity, irrigation , farm wages ( wage price-inflation spiral)
Poor supply chain infrastructure - cold Storage, warehousing, transport
Would welcome any further addition
#-o
For Indian Financial System, RBIs FAQ sections are really good.
I can be more accurate if you can state some doubts.
Thanks for the suggestion. I will throw here my economics doubts as and when I come across them. I hope gentleman like you will help.
Thanks again for your positive gesture. I appreciate it.
Take care.
Indian Per capita income growth rate was higher in 2004-2010 but the inflation was less than now where the growth rate is low (5-6%), so rise in income doesn't as cause lacks suitable base.
Further, i think its lack of parallel growth in agriculture and supply chain industry w.r.t growth of population which is causing the inflation, more people are chasing same amount of output.
Lastly, I think currency devaluation also played a decisive role in it, India isn't a export economy like China, so the cost in rupee increased while there was not so much change in dollar terms in International market.
Just some Opinion, Guys share your view.
Doubt: If UPSC asks what's the reason for Inflation, will it be ok to use Economic survey's POV which doesn't seem so accurate?
Answer to the query 1:
A country apparently gets the money flow on account of US QE. Indian companies borrow on a large scale from US as the borrowing becomes relatively easier owing to QE. We get 'dollars' but this dollars are injected into system by Indian companies and not by govt. Or Reserve bank of India so virtually it does not affect foreign reserves of our country.
Answer to the query 2:
Yes, money gets injected into the US financial system but then they have enough foreign reserves so relative fall in US dollar value is minimal.
Answer to the query 3:
If US economy grows on a stable scale on account of QE then there would be more demand of US dollars. Why more demand ? Because the investment scenario becomes more friendly there on account of QE.
More demand of US dollars ----> Rupee falls further leading to its depreciation.
-
I hope it helped.