Because it's More than a Subject
The financial system serves as the circulatory system of the economy, channeling funds from savers to borrowers, facilitating investment, and ensuring the smooth functioning of markets. Financial institutions occupy a central position within this system. They mobilize savings, allocate credit, manage risks, and provide a framework for the implementation of … read more
The International Monetary Fund (IMF) is one of the most influential institutions in global economic governance. Established in 1944 at the Bretton Woods Conference, the IMF was designed to stabilize international monetary relations, rebuild war-torn economies, and prevent another Great Depression. Over time, its role has expanded, adapting to global … read more
Factors of production have been classified into four categories: land, labour, capital and entrepreneurship. Land in economics means all the natural resources available from air, water, from above the land surface and below it which can be used for production. Similarly, labour does not only mean physical exertion, but all … read more
No modern economy can function smoothly without effective macroeconomic policies. Among these, monetary policy and fiscal policy are the two most important tools that help governments and central banks manage economic growth, control inflation, reduce unemployment, and maintain financial stability. Understanding what these policies mean and what they aim to … read more
Every country import from other countries the goods that cannot be produced at all in the country or can be produced only at an unduly high cost as compared to the foreign supplies. Similarly, a country exports to other countries the commodities which those countries prefer to buy from abroad … read more
Following are the functions of money: 1. Medium of Exchange The most important function of money is that it serves as a medium of exchange. In the barter economy a great difficulty was experienced in the exchange of goods as the exchange in the barter system required double coincidence of … read more
National income of a country can be defined as the total market value of all final goods and services produced in the economy in a year. The sum of all incomes of the people of a country is called national income. This national income is greatly related to the national … read more
The innovation theory of trade cycles is associated with the name of Joseph Schumpeter. Schumpeter accepts Juglar’s statement that “the cause of depression is prosperity,” and gives his own view about the originating cause of the cycle. “Innovations in the industrial and commercial organization are virtually mainly the outcome of … read more