🅾️What are the fundamentals of an economy?- Click here
🅾️🔰G= C+I+G+(X-M)-> C= will not rise to prepandemic level if govt doesnt help- even the growth we see now is because of base effect- i.e. Coming from negatives( because of last year lockdown) to positive- feels like a big growth but in reality it isnt- why?- it is still less when you compare it to pre pandemic levels.
🅾️So what is the article suggesting here? - increase the expenditure on I component not C. Because investment will create assets
✅The article also talks about Efficiency- ICOR- i.e. how much additional capital is required to produce one extra unit of the goods/ services. so naturally if this ratio is higher, it means one is wasting money- so review of the existing projects is good, but also focus on banking sector so that they exhibit more care while giving loans.
🅾️What are the fundamentals of an economy?- Click here
🅾️🔰G= C+I+G+(X-M)-> C= will not rise to prepandemic level if govt doesnt help- even the growth we see now is because of base effect- i.e. Coming from negatives( because of last year lockdown) to positive- feels like a big growth but in reality it isnt- why?- it is still less when you compare it to pre pandemic levels.
🅾️So what is the article suggesting here? - increase the expenditure on I component not C. Because investment will create assets
✅The article also talks about Efficiency- ICOR- i.e. how much additional capital is required to produce one extra unit of the goods/ services. so naturally if this ratio is higher, it means one is wasting money- so review of the existing projects is good, but also focus on banking sector so that they exhibit more care while giving loans.
A leaked Telegram discussion by 50 so-called crypto influencers has exposed the extraordinary steps they take in order to profit on the back off unsuspecting defi investors. According to a leaked screenshot of the chat, an elaborate plan to defraud defi investors using the worthless “$Few” tokens had been hatched. $Few tokens would be airdropped to some of the influencers who in turn promoted these to unsuspecting followers on Twitter.
Spiking bond yields driving sharp losses in tech stocks
A spike in interest rates since the start of the year has accelerated a rotation out of high-growth technology stocks and into value stocks poised to benefit from a reopening of the economy. The Nasdaq has fallen more than 10% over the past month as the Dow has soared to record highs, with a spike in the 10-year US Treasury yield acting as the main catalyst. It recently surged to a cycle high of more than 1.60% after starting the year below 1%. But according to Jim Paulsen, the Leuthold Group's chief investment strategist, rising interest rates do not represent a long-term threat to the stock market. Paulsen expects the 10-year yield to cross 2% by the end of the year.
A spike in interest rates and its impact on the stock market depends on the economic backdrop, according to Paulsen. Rising interest rates amid a strengthening economy "may prove no challenge at all for stocks," Paulsen said.
UPSC Highlights issue explainer by Vikas kanukollu from us
