Notes and Study material for Exams
The 1991 Balance of Payments Crisis in India: A Tale of Structural Flaws and Economic Reform The year 1991 marked a watershed moment in India’s economic history. The country, once known for its socialist policies and self-reliance, found itself teetering on the brink of a financial meltdown. A severe Balance of Payments (BoP) crisis, triggered … Read more
The Fixed Exchange Rate: A Balancing Act Between Stability and Flexibility The exchange rate, the price of one currency in terms of another, plays a crucial role in the global economy. It influences trade, investment, and the overall economic performance of nations. While floating exchange rates, determined by market forces, are the norm in today’s … Read more
Devaluation: A Double-Edged Sword in the Global Economy Devaluation, the deliberate lowering of a currency’s value against other currencies, is a powerful tool in the economic arsenal of nations. It can be a strategic maneuver to boost exports, stimulate economic growth, and address balance of payments issues. However, devaluation is not without its drawbacks, potentially … Read more
The Dance of Supply and Demand: Understanding Floating Exchange Rates The global economy is a complex web of interconnected markets, and one of the most crucial elements in this web is the exchange rate. This seemingly simple number, representing the value of one currency against another, holds immense power, influencing trade, investment, and even the … Read more