Archive of articles related to the economyArchive of articles related to the economy
Over the years, especially in the last two decades, the INR has been relatively resilient against the USD compared to its past performance. As our economy grows, we should have more faith in our currency. Before we look at the data, let us understand why the Rupee fluctuates in value against the US Dollar. Note: I…
Continue reading →Before Twitter announced massive (~ 50%) layoffs after Elon Musk’s acquisition, financial services company Stripe announced a 14% layoff. Transport company Lyft followed with a 13% layoff, and on 9th November 2022, Meta, which owns Facebook, Instagram and WhatsApp, announced that it would cut 13% of its workforce. Earlier, Amazon announced that it would freeze…
Continue reading →A reader wanted a simple explanation for why the INR (Indian Rupee) fluctuates in value with respect to the USD (US Dollar). A discussion. It may seem strange but just like there is an equity market, bond market, commodities market (gold, silver, oil, cotton, etc.), money market, there is also a forex market. That is,…
Continue reading →It is common knowledge that the Japanese stock market (often represented by the Nikkei 225) has been underwater since December 1989. That is, it kept falling (excluding minor recoveries) for about 23 years until later 2012. Since then it has seen a recovery. Many investors have asked us, “can this happen to the Indian stock…
Continue reading →In this FAQ aimed at beginners, we discuss the role of inflation in personal finance. This is written for laymen by a layman. An academically precise account of inflation taking into all factors responsible is beyond our scope. 1: What is inflation? Inflation is the general rise in prices in prices over time Just like…
Continue reading →RBI Repo rate history from June 2000 to the present is presented in the table below. The repo rate is the rate at which RBI lends money to banks. It is an inflation and liquidity control measure. A simple explanation with an example is available here: Understanding Repo Rate and Reverse Repo rate. Since the…
Continue reading →I am sure that at some point while watching the news on TV or skimming through news articles, you might have come across headlines like these and wondered what they meant: “RBI raises repo rate, reverse repo rate by 25 bps”, “RBI cuts repo rate by 25 basis points” With the RBI’s rate-setting panel (the…
Continue reading →Every time the RBI lowers interest rates, we see many investors complain. In this article, Harshini explains why a high-interest rate is not healthy for our finances by taking Turkey’s example, where interest rates were recently increased to 17%! Older readers may recall when EPF and PPF rates were as high as 12% in the…
Continue reading →The Government launched an LTC (Leave Travel Concession) Cash Voucher Scheme for Central Government employees on 12th October 2020 to enable employees to purchase goods and services instead of availing LTC & leave encashment. On 29th Oct, they have extended it, non-central govt employees, as well. Now the private sector, public sector and state govt…
Continue reading →The Government launched an LTC (Leave Travel Concession) Cash Voucher Scheme for Central Government employees on 12th October 2020 to enable employees to purchase goods and services instead of availing LTC & leave encashment. This is a reimbursement scheme for LTC expense to revive the economy. Details and FAQ about the scheme are presented. About…
Continue reading →The consolidated monthly Account of the Union Government of India up to the month of June 2019 for the Financial Year 2019-20 was recently released. The total spending is Rs. 8,15,944 crore. This is 431% more than its total revenue!
Continue reading →India’s “debt to GDP ratio” increased by 3.5% from March 2019 to March 2020. In this article, we discuss concerns over how the lockdown could push govt debt higher and enumerate the status of govt borrowing pre-lockdown listed in the Ninth Edition of the Status Paper on Government Debt.
Continue reading →How young earners are coming to terms with the market crash and the possibility of a weak future
Continue reading →Here is how the lockdown has impacted sixteen entrepreneurs and business owners from various walks of life
Continue reading →The consolidated monthly Account of the Union Government of India up to the month of October 2019 for the Financial Year 2019-20 was recently released. The total spending is Rs. 16,54,905 crores, a good 77% more than its total revenue! What are the different heads of income and expenditure for the government? An explanation.
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