Conclusion Economics is a field of study that has become increasingly relevant in our globalized, financialized society. The economy is part of our collective conscious and a buzzword that links personal finances to big business and international trade deals. Economics deals with individual choice, but also with money and borrowing, production and consumption, trade and markets, employment and occupations, asset pricing, taxes and much more. What then is the definition of economics?
In India, this figure is less than 2. Ironically, India remains the fastest growing market for financial newspapers in the world.
Does that mean that people want to research and stay updated but not invest?
I am sure that as awareness of stocks and financial products increases, as online accounts and faster internet connections penetrates deeper into the country and as our capital markets develop further, a lot more people in India will start investing in equity markets.
Recently, I was invited as a guest speaker at a college in Delhi where I spoke about the importance of starting early with investing. I asked the students to raise their hand if they Economics terminology read a business newspaper.
More than half the audience raised their hands. I will tell you exactly what I told them that day: Below, I will list out some of the most basic economic terms used in India which will help you understand and interpret key economic indicators and the impact of monetary Economics terminology on the economy.
They will also help you extract a lot more information out of financial news. The primary tools used by the government along with its agencies, to regulate the financial system can be classified as i Fiscal and ii Monetary policy tools.
The annual economic survey and the annual budget list out these policies of the government. RBI prints new money primarily based on growth in the economy i.
Financial media regularly uses some basic economic terms while reporting a variety of data figures like stock market returns, GDP, inflation, FII flows, interest rates, industrial production etc.
These figures are closely tracked by investors and analysts in order to predict the future health of the economy and make investment decisions on that basis. All these data points directly or indirectly indicate the state of the economy and business environment in the country.
Stock market returns are a leading economic indicator and draw attention to the state of the economy. The stock market usually begins to decline before the economy declines and begins to improve before the economy begins to pull out of a recession.
Sometime back I wrote a detailed article on what stock market returns really indicate, where I compared the returns generated by the BSE 30 companies with the broader economy, available here- BSE Sensex Manufacturing activity is another leading indicator of the state of the economy.
A rise in the manufacturing activity of materials indicates a rising demand for consumer goods which is a sign of GDP growth.
Further, a rise in manufacturing activity creates employment as more workers are employed in the manufacturing sector. This new employment results in more wages being paid, all of which drives consumption.
In India, the Index of Industrial Production IIP data is released on a monthly basis which indicates the level of manufacturing activity in the economy. FIIs are foreign entities which are allowed to invest in the Indian share markets and are a major source of liquidity for the stock markets.
When FIIs invest large amounts in the Indian share markets, it is seen as a seal of approval by sophisticated investors who back themselves with detailed diligence and study of the future prospects of the economy. For this reason FII buying often indicates a positive economic outlook and vice-versa.
The above view on FIIs may well be the one widely accepted. In my experience, FII buying and selling indicates nothing about long term prospects. Given the academic nature of this article, I nevertheless included this as an indicator. FDI which is a direct investment into the country from an entity in another country, either by setting up a new company or by way of a merger, acquisition etc.
Part II — Click here to continue reading about the instruments of monetary policy in India. Leave your Whatsapp message or Email at rajat sanasecurities. He has covered Indian markets for over a decade and is regarded for consistently identifying early stage investment opportunities.
Attorney by qualification, Rajat has done extensive work for improving corporate governance and disclosure standards.The objective of the papers of Elisabet Deig was to expand the economics vocabulary provided by the Government of Canada and the University Pompeu Fabra studying and analysing it in different branches such as: employment, national and international economy, the cost of living, production, savings among other fields of study..
The main task of this study was to complete 30 of the Economic Glossary is a list of over 2, common economic terms definitions. With our Economics dictionary, you look up economic definitions and increase your economic vocabulary. Apr 06, · The modern economics profession made a collective decision, long ago, to develop a system of jargon in which words have multiple, sometimes contradictory meanings.
grupobittia.com - The Investing Education Site. Includes the most comprehensive investing dictionary on the web as well as articles and tutorials on nearly any aspect of the market.
This lesson include basic terminology before starting Micro Economics and Macro Economics Sign up now to enroll in courses, follow best educators, interact with the community and track your progress.
Impacts of extreme weather events are relevant for regional (in the sense of subnational) economies and in particular cities in many aspects. Cities are the cores of economic activity and the amount of people and assets endangered by extreme weather events is large, even under the current climate.