Crazyclink

 We all have heard about the central bank printing money like crazy which dilutes the value of the country, or money printing is bad, in this blog you will have an idea of how these things actually work. Monetary policy is a set of actions taken by a country's central bank to influence the supply of money to keep the economy humming, understandable? if not then do not worry, you will get it.. Main Objectives of Monetary Policy Maintain price stability (control inflation). so yessir, inflation is bad, it just that extreme rates of inflation can create a crisis in the country, so the big boss has to maintain it. Achieve growth while managing inflation, yes so maintaining the inflation is not enough, they also have to maintain it. Monetary policy is the responsibility of the central bank. The bank achieves its goals by regulating the amount of money circulating in the economy, which is determined by the rate of interest. Let’s explore why interest rates are important. If you deposit m...

There are people who all the time yap about fiscal policy and fiscal deficits. What is that? Today, you can read about it in this blog. Oh yeah, it's going to be interesting. There are two main ways by which the government manages the economy Fiscal policy and monetary policy, two big names, right, but, today we can read about only one, you can read about the monetary policy later. Fiscal policy is about the decision govt make regarding income(tax) and expenditure(spending), something like your parents or big business do regarding the budget, but when govt do, we call it fiscal policy, double standards right. Govt needs to ensure that its spending is in line with the spending income, and then when the government expenditure is more than the income of the government it causes a deficit which is called a fiscal deficit,  if not then, there is a need to borrow the money or sell the assets,   imagine your parents has to take loan to send you to big university or start a busine...

Why do they care so much, why should you? You must have been hearing that the Federal Reserve, national banks, or “Banks” have reduced or increased the interest rate. Have you ever wondered why people care about this and why you should? Let's just start from the basics. We deposit the money in the bank that provides the highest interest rate, and if we want to take a loan, we search to get a loan with the lowest interest rate possible. If you think about it and think about the major chunk of the population will be affected if National banks decrease the rate of interest, which leads to a rise in consumption in the economy as there will be people who tend to get loans at a lower rate of interest now, and people tend to deposit less money in the bank as they will be getting less interest on the money. If you are someone who is kinda into economics you will say  “Bro, what about the government expenditure, and what about the demographic of the country, what if people do not ...