Gold Chain

 The recent World Economic Outlook released by I M F entitled 'Countering the cost - of - living crisis',listed  a number of turbulent challenges - inflation higher than seen in several decades, tightening financial conditions in most regions , Russia Ukraine war, lingering effects of covid  pandemic and resultant supply disruptions particularly in China,heat waves and droughts across Europe, Central and South Asia largely due to global climate change.Accordingly global economic growth has been severely impacted and it is forecasted to slow down from 6.0% in 2021 to 3.2% in 2022 and 2.7% in 2023, which is the weakest growth recorded since 2001.In advanced economies in 2021 5.2% ,2022 2.4% , and 2023 1.1% growth is forecasted.In USA corresponding figures are 5.7,1.6 and 1.0 respectively whereas for Euro area it is 5.2,3.1  and 0.5, Germany 2.6,1.5,-0.3, France 6.8,2.5,0.7 Japan 1.7,1.7,1.6, United Kingdom 7.4,3.6,0.3.In Emerging market and developing economies project...

 Since the  GDP or percapita income alone do not give an accurate picture of the quality of living of the people in any country various methods or indexes were designed and developed by experts and development practitioners from time to time, Accordingly the concept of human development is described as "the process of widening people's choices and the level of well-being they achieve are the core of the notiion of human development Such theories are neither finite nor static "Human Development Index (HDI) prepared by UNDP is widely accepted as a vital measure of development originally developed by Pakistani economist Mehabub Ul Haq and endorsed by Amartya Sen and others. Since 1990s HDI  has been prepared based on life expectancy at birth, education measured by mean of years of schooling and standard of living by Gross national per capita income. The HDI is the geometric mean of normalized indices for each of the three indicators. As per 2022 Human Development Report...

 The 2022 Nobel prize in Economic Sciences is shared by American trio- Ben S Bernanke,  ex chair of Federal Reserves (1stFebruary2006 toJanuary 31 2014) and Senior Fellow Brookings Institute, Douglas W. Diamond,Professor Chicago University and Philip H.Dybvig, Professor, Washington University for their rigorous research on bank collapses and their impact on broader  economy and specifically how to avoid bank collapse . Their analysis is largely based on the experience of great depression of 1930s. Financial crisis and depressions are kind of worst things that can happen in the economy. These things can repeat again and we need to have an understanding of the mechanism behind those and what to do about it is well articulated by this year's three Nobel laureates. Firstly former US Federal Reserve chair person and researcher Ben Bernanke focused his academic expertise in analysing the intricacies of the great depression of 1930s. Bernanke's work  of 1983 observed that...

Reports from international agencies and individual countries indicate that almost all economies are currently fractured in one way or another. According to UNCTAD Trade and Development Report 2022 After a rapid but uneven recovery in 2021, the world economy is in the midst of cascading and multiplying crises.Incomes are still below at 2019 levels in many major economies and growth is slowing everywhere.The cost of living crisis is hurting  majority of households in both advanced and developing countries.Damaged supply chains remain fragile in key sectors.Government budgets are under pressure from fiscal rules and highly volatile bond markets, Debt distressed countries, including over half of low income countries and about a third of middle income countries are edging over closer to default.It may be noted here that while financial markets are in jittery,both vaccine role out has been lagging and climate stress is intensifying across the globe particularly in many low income countri...

 Economic policy making generally focus on increasing growth in income,output and employment along with maintaining price stability and balance of Payments stability.Employment results  not only in income generation but also is crucial to provide one's dignity, welfare and development. Economic growth without a corresponding rise in employment opportunities amounts to growth without social justice. Nation's progress largely depends on the participation of workforce in the process of economic growth. Employment is very vital both for poverty  eradication and raising the standard of living of the people. In mid 1980s and later after the introduction of economic reforms in 1990s country invariably  achieved higher growth in income and output coming out of the decades old " Hindu rate of growth ".Growth trajectory witnessed not only a steady decline in share of agriculture in GDP from 30% in 1990-91 to 18% in 2019-20 but also a steady increase in the share of non agricul...