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    Economics notes till bcg matrix

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    Economics notes till bcg matrix

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    25 views35 pages

    Eco 3 and 4

    Uploaded by

    Khushi Gupta
    Economics notes till bcg matrix

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 35
    FUNCTIONS OF MONEY Mediuro oF exchenge Slondond of Depend Paxerenta Unit oF Account Stone oF voslue CuReACTERISTICS unable Foumboilele Onsenbple rernoliy Berepboble ebe TmpoR TANG OF MONaY nh age ich lrapou tance in he Aude @ Bee henthean tat ah jdineck immpoubence in the Picld of Bronomics « DIRECT TMPORTANCE Pow ma:Kon TNOIRECT TmpoR TANCE dom Rrom bank Solution of Cenknal Ecenemic Problems Bass of tnedit Index oF Beanemic Development mobili. api be in yl oF Capi bal Meanune of sodal Wweifene Nashonal and inkanasionall unihy 4 Mis Conneney Syshm 4 ooh Ma osvHy Potlie + demand d epowats.cslth the hanking deporisls cstth RB! = M4a seu depowsls sith Post omer ening bank. = MLA me depowsts with the bank! Spl Mis astideporisls sith Post of pce Feu lag banks excluding Nashonost Seding CenhPr castes é Velo of money Is Fixed because oF “insh fukionad Paschoen' mens Supply bing ex09ene lakes that nominal and veal vamodales eam Classi cat dichobmy Slates that no | anabised seporaskly , $0 | ed luvinad in meal vontesblea, ucleeby ea ounein ovtpe io : Fisdenwed facm the monty supa | Paree. ~ SAG PNIS 03 (definahon ) Equakon of Exchange MxV 2 Pxy (denhty) Qvont ty Hreouy of Money ae Touing Fishas (141) view: V 'S Foanty Constant IE Ne lenges identity, bot theong Nominal ineeme. PY, deleamind bum lascal assume y Fainly constant P dekamined by m WanklyMnouy of Monty demend Bank tyra Men Sa Soe v Me = kxey Tmpl@kon:Trkatt Rass no} Yeopentank ty nad i Combnidge oppneuch : Ia Velocity constank q Clusrieerl Thought V constent becouse th, late. aid nek have good Goel depacsmon => € conemics Giese Conateat hang? in capeclaens of fubune change FUN) end odtidgis tone beny B aune Many Petiglisn Armen Rake Laramie Raabe Confidence ter Barn Mane 3 Tre -Depewt Rash o Vaslee oF Mang eal meme © D Intakt Raste © wrencheny Pot © shoe Foschons: MONEY suPeLY LINE Msc+o Cunneny, coms ond bills © = Demand deposits : chealeirg ovetount deposists. Ce The Quantity of monuy in, : dnutaton ts conknelled b eee pred e 10 lee 4] the Cen! 1 Tr Kneok | Raske ge 1 (ste)s eatin Sosa of Mone ) Gemmmemememens * MODEL 90 Money Su ppiy ia ao © The Moneteny basse (b) is mon: ee ana by Pia UaniRonck. Ona td cok B=C4R <'9 Comer, OTe eumany deposit Raho Cen) ts the ammount oo hotd asa Puiachon of Hun demand depoxste. 00 en, Car C(p og fe ee eee eae Diuide the numenaston and denominaton by 6 Mle = (c(oss) / (clo+Rr[>) Mle = (ens) / (casan) m =[ Const) | Centon) i accu Orfine mensy mulkplien m= Cast) / Corson), yo Fon cs Ret inatane In HL menchery bese, menty seppty inencancs by Rem. Exomple: 8 - $500 Billion ty 20:6 ond an 26-4: ™m=(o4as) | (oc 204) 208 ™ 2-8 (600) = $1,150 bition . CHANGE TN MONEY SuppLy » y 13 Rnopontional be the mone ACen MM m-Pold . © The lowsen He wuneave. -deporit Raho, the mone leans banka make| Pad the bidhen ts He. monty & rouliplin . Othe monuy supp Innesoe 19 9B In OMe lowe Hre cumen depomt vasho, He Pasen dletlons of the Prenat boot the potbti moth put hota ee ond tre (ewe is the “ae NAL QANKING SYSTMEMS: Ons ane mequined by lous to hold a Peancen' trepep , The able to we! 8 = moe : deposists > RR a maquind nnves ; wemenven held by Phe PED. 9 °8 = Vincaven ckeposist Raho: Cun: @ip), FRachO oe ee soil Je OF alt deporists funn the deposiste. Percentage sehamingd by ine Pep TOOLS op MONETARY POLICY : deport Raho: Ratko of coph Rereven ty deporte, e AN Om ae in aad be man bained « ME AUNLANED fe lend my \ouswiny the Ratio banks se hae mor “ Cmonuy Suppl \nveok \uncoring the mon is 4 loons be Drstount Rake : Raske of intunmk the PEO changyeo on et Krom Ye By lowering tre male, banks tntomanye bomouwsin, PRD HE menus Vy, ana \end > the Public Inincanin, € “4 wg t Anime 4 Open Menkela geurabons | FROS p bonds vathenw and salweF thavannme om ee bondsand fay ng He Sellens, He PAD Inenesors the KPANSIONARY MONBTARY POLI Trntaoe He mon ud werly by any one oy CombinaHon of the above tools. © Redoce the Takk Rosle te an tounoae. Inewmbmant. Trencene emmplyouman |. and income N MONEY of MANO © ME amount of mon Pon poses, depends + 9. Ab ony lesel of PA20Ml INteme i‘ pt GOalhy dl emend cinco ce iohwek Rae Caitite CU yy) Mey tee demanded Fon tnansasthon I Inteme and inknut Rake 4 Speestes mm MONEY Dera TUNG famine ae ™IPsu (ys) —~ Y —!| (mafe)a L 80 too E Cventity oF Money: sMONEY MARKET EQUILIBRIUM coun Quenhty of Money. Ex PANSLIONARY MONETARY POLICN Inknat Qate (7 ) ONE s (erfeye Bo FS Quantity oF Money Tre worenue wraised thneugh the Fainting of money te casted ‘ Wehen tne _gouaanmink Paints menuy te foone. cxpdnditene 1 ae the money Sepely. Me inucacc in Ihe mon, InFloston . Painling menuy to viaise ip far amend rr td Surely im tian ccs rag te oie. Imporing an inPlal Economies call the Intenat cnoste that Hye Tabak waste and the Inewane Ingpun puneheae ns & tnkatak wake. Pe Nominal "G Peesen the reat wein Ths shows thewelashonthip behucen thenem voile of Inflation ; whine nts nce inkacol rake ey bene ate and Inlawk mak and ¥ is the uate of inflahs < Nomi mast me and that 7 in timely the Peneentage change oP hy Paice ape Ih incneanes | the we The que guest they, ay Record im bun Ts the equa somina:! wake of inhale nal inkrakcan change fon hue nuonans : beeause ale changes on because the inPlalan note chorgen- and the Fishin equation togethn fell us hee man wth affects HL nominal Inkael uncle. Arendt fe the quan thee the noo te of money quowth oP one feneank Caused ake of mPlakion Actording tp the Fisher equasken, ary intatane in the maste of inPtahen, Nenee2 in the Nominal inhnok nates. Ts the crack Unik behueen oun Fee Pomilion equasions: Te areehty equalten in pacenteige change Foam and the Rahs equasten. Te thonge in M4 % change in v 2 oy thongs in Oey, v chogeinvs 4h 4 couse Ly. change in Y. “he henge in + ss 1. choage inY. (Mienana] Crepe REN: was a F BETWEEN Demano -PULL TNELATION AND Cost eustt Demand Cost - push inflakon ; - Pull InPloshon Conaig, wing the ce ' - bend medi tf nes a Pater Late to Cimencase tn cosh oF fueduehon Saeco wage cost) of the Fmms as ff conve rwults If Cosk- push inPlahen . writing Price funden g tnunaslly col\ed demand-pul! inPlasHon In Flos 2° In cove oF demand -pull inflabon 2) Buk duc to tameose In ata p « based Raedvens one encouraged to intreane of Puoduchon enotess oo od than pueducKon. In such 2 siuatten due to tous Puofitubillky. ap demond Fon tine fosttos onc inntacd leads to a weducton ™ hotel Which leads He in-tacooe in-foscbon fnoduchon ond hence betel er Parees Commodikes ostso neduced « Tablas 3 under demand - pull inflasHen 3 Bobin cane of cost-push Po om exlskence of Full emelyomut of InPlaion exisknee of Full te WmoUALES Is an Impoulant crieHan. emplyremenk is nob an imeonbeml Pp yp ey ere _ tenditien Cua and pull inPlashon this 4. 9, i a esssumed thal coast of Rnoduchon nKne othen hand, unde cok © ug) Mamnaind unchanged Push inftaHon egquieg naite ou nea Fou the commadibes inthe a S ©: DieguommasHeailly demand omy eomumed to be Axed. Hg alata con te en dlind ar eet | 628n the ethan rast OF wighhaaad, Ssh iyieed ca He int InPlakion can be ; © we demand Gnue Kup in: aga Ue hele oF tetera Supply conve Unchanged ‘a © Unda demand - PUN mPtaske, demand Fon tommodihes ee arene Patee (evel Brom asbeove- Our b aon naan “10 ceaail Prrogit » t3 beamed an demand-pull in sik | COat oF egy, loon is hi: IaPtote | Seana all inPlation. gurwnarl poison Punhes Tk nPlashon % Demend- pull inflashen may | Suthon infayae YP: Bee hy Ins galtomey inPlashonany eihuatg at !? hamd on ae chucked “ost the iniHaSl stage. Oh P+ on ty, 4 Wwohanee & me ene Bieatlclen ral (aa be ‘ Fn of Fate Qa = tent demond rae Conbrotted beth Fiscal ond menclant at! Mtluken | 4. eHeakue fe chute reek cnr Sh | Gotin AUSune ™hon nencane to Catces oF Goede (nish, each ung i qenesit. (NES ee 4 Hane — J enuiees ; consequent v Int leshon n the fanchosing lous eF wmemuy. penal INFLATION On DIFFERENT CrROvPS TNA SSeeRy In an ceonomy om cae geod one ok © MGs cephag on “eset j Binge Pankeslanty. In cane saqnen forts dahun tauuakmants Highir Prodwchon Wighin empty ounint and incame Possibith, & highs income Pow He shane hold ns Gain Fon He bomewus . rep PRO PAR HIGHER PROPTTS Paotit incomes of he Cmodueens one gennal Feuhed by up inh Masten, be cause they Con sell thin fnaduets oo highs Patten . HVOWER INVESTMENT 0 The en wep my aonigs And Lem Inventors get ardd ed irveohons- ‘sald % reductive cuehuihes duning inl trig Can coon Ee Fouts Prom such nwnincer fs Tee wd Uitn ee PRODLE TION Tf fa i odichve In veotinents igh "(roduc Hen, Qrrewss daning taPladen it eveuld (ead oF Vanious Qeeds and Banviees in the ecanomy « WENER EMPLYOEMENT AND INCOME : PfnenE goods duning inttahen Toneor in te output of eee fSq ventous Fosctous 6 would alse mean rey jourment and inte + led Hest eme Feel gabe i trance dining inflate dean dprourtunihes will ooboin w i ena fou gacds may kad toa detumulakon’ of in atl wo gee stocks of ues mahrwls ond sumi finished goed eaith the Pre Wilt deamane clus te highs demand) . inPlesl oaduw POSSIBILITY OF TIGNER INCOME FoR THE SHAREWOL ov inblakon Periods, If the campanits conn high Pano pits they tan iri aie oie Fon thin vhanchaldins Wenee the divid: Intome oF te vhonholdins may also wise dott inPlashien « GAIN EoR THE GoRROWERS Tatlahon means a deeneane in the Vorlue en punchanin, Senta: Tet wake of inkaist to be ‘Paid by Ine bewncctle Ral the inflashon nok, He bewnowen sill oin. Because Hie neal ben, Of the mong) wehunned ley Hee bemneuen Gs anhote les ee ae ee the Pasig bomourd tania. UNFAVOURABLE CaNsEQUENCES TE tne Fett in the nealineame of Fined Income quevps. Tnequalily In the dlishnibulon of incame 4 ® Opsls (Hae Ponning Cnocer © Anencooe in Setwlakue inushmenk HeamPul impasth on Capital asceumulutoy | © Nendans wil Leone. Bienen Wl Tr ngent on canaub incase © Gahan Fendeney of peers PALL IN THA RBAL INCOMB oF FIAGO 2NcOMe ne rears Punshoriny Powsn of monuy inteme [Rear cocemne = | Real ¢ nice level] the mon INCOMme Of ne fae manny income) £ te \ Ja copa i (ele Neves , tre eas} tocome call Baill dunt eteils wrontns, gastenied People inwon - kerning tannins Vela INEQUALITY TH THE O1S7@QUTION Of TNCOME GuETTTEEEE) mw fnoht Lacemes of busininamen ond enhnupmeneuns Intncace Juang nPlasven, while Hhe wcot Mneome of the Connmon salanied Pecpl. declinwo - 30 inequaslty In the diahnilbuken of income become ding aPlakon 3 UPSETS THA PLANNING PROCESS ey Flaenony Pnasune moy alae upatt the enki planning Pnecess inan ctonemny when Pred of goods, meshaials ond faxbbus Souter Intnedoe CenkKnvo the mene monty han te bc spenh Fon the commpleon of ony ieatmint furojeck¥ tesken vp dunt ony fleaning Puntod. TP waeve mone Finendal Resoun estate waved by the trovnnmenk (tnnough sauings om twrateon), plans fenget au te be cuntoiled. INCREASE TN SPECULUEATIVE INVESTMENT © g és He Price Level Riseo ota Pack Rake, Speewlalue inueshment (seg faachoning hare, land gems,ele. just For spcculestue fonpere} cane in the cconomy Four a Lonming quick Pucpita. hue typusel tahrunks donot hetp 4, the cra ae Sarees capi in the if Menara a hike fare ARMPUL TMPACT ON CAPITAL ACCUMULATION l alee Rise bees mie thurenie, Peapte finchen goods +> me! il eiAiareate astute of money cult Pall In Fubune ) + ke nae craig Consumphon to Consumphen in Pubne: 30, Hy Stomey (1d AE the same hime, fam abilly te save \ tos, neem, Far because, ltas because, eit eae mee Send mone Pon Pune the < ods and senuiees. When both osbl ond wt ng lens hs ° len cumount of hetomus walla EE eas ao nult th Make a hoamPot tnpak Ber ee ie a Copttel aceumulahon in an ecg depends on the queuilh of the) muuhmenls . LENDERS WIL Lose Wehane aslreos InPrashen Fon Hi indicoskd that bomewuna esill Semenesnen, lenders wilt Lose dus Phy one oot hreslty nee eiui Panthanine, foun) then bee. jain dunn dP lasbytn | 9 on amount hosing lou? vastue (ay ome. “RAMPUL TmeneT on Export INCome TP the Purreen of expootitema clemand tm tre Powe tepoubinteme of a ounhay, GREATER TENDENCY oF A HORROING, Now we shall discuss He MasHonal Income en tone Chenackenisd boy osthanash mrevernenS in HO a Spansionany phane OP tnt burinins excl @ checlining Hatnd » Jn tats shank of agquneg tule tea oF EXCESS DE MAND oR IN PLATION®RY canes ag ate cleenand (AO) exceeds he maximum Polen} cuntaponding te Hie Gall emplyoumané levtlin an eta tneiPis cooled 6 Stem oF exteos demand. ante, Be tos demand = AD - As 70 on AD > AS Couneopending 40 Poll ermplysement level). The whin tne denivud agevegaie a = (ea), - 4, * Cert), = (Crt)p AnPleabinery qee We ok NoWone xCeeds Ye 2 asic Q TNAL A+ The b ae "Plaston neg Schedule Pa (le yal oomeunt, Penlest ) ind NIE Conan MI ap TePlashanony ber d Lv See Xe x clesmue Hoe same Hing te, at the Pull unplyeument [aut of mal cutest (Ye) Kat dohuud Pawan agengede ex pendihune (Cert Breeds tre Full emplyourrunt level ef equilibatum nesHenel eutpot (Gt)e] by en amemt oF BF This wheusen in Plcheneng ace: FoR THE CREATION OFAN BRCBSS DEMAND of BTIONARY (AP basic Reasons Fou tne artes ofan exces demand Siheten enon *eshonaay gop in the Ceonemny oft 0 Feltousn TMRGASE IN THE AMOREUATE O8IRED PavarE Consume of sEAPENDITORE eee bs Yneneace wy Hie egaaca wk alesival Foivede (Ca heomenie Iaoe (east earth lest! of meast nestienail’ sn intneant in the € con, +. This ene =f soocaperne Aa aa “rand ein INew A398 In tHe AOOREDATE DESIRED PmvATE INvesTmeNT ) EXPE NOMURE the "i “tovegete derived Rivaste rnutchment expendiine (2) wtscs oot cash Yeust of weal mabonal tacome, then ott den ttn ve ne meeemerrny Theron heappen cise tn ei ec wremprepte: alee the aggncgale demand fom goods Snd seaui GH) ur WME AW The eFanaeny urinns Banos pas in ay This rnay happin dus te 0 bethn b ¢ a closed economy otha Reamamy . 0 Fan tue have co Rardened Geemomet in kenuuntion in cronomic avcHuihes ns Howe Fase nou think of anepun econem uslth fom Hue geuunment MEKNHON in CLanamic aeHulkts Hen the addiHonal nesnefls Fav the 2 Lamenqence of crcins demand on IntlaHenony Ger wile be on Poliouss: plmana TNCREASE INNET ARPORT EARNINGS wi oie An inteane te net expout faanings cuould mmtan on inenement in the wee Wcarme over impont Poyments of the Counky dust any Ponhester yten WIS means an addikonal demand Coy domole a Ond Suuiew Inthe ovsan manket shan exces of capant INCREASE IN Grove TF tine 18 a Ament Bx ENO TURE DECADE Im gouimnmint expendibune al easel, lewel of mesial aa Mov ones\ duning ony Pontibatan Yeon, tis cseutd alse lead to a wvseinl ome ‘ Aggy gos he demmard Pow gpods. ond Semtees In the Siena RBOUETION IN TAX RawBS AP, Wakes OF dineck heures (eg twice fetes Hae gow moment | then the / Cxalth ban Jone ueduced srepeeditve Ines wn . Meee aieare oe pe People euitt ee ° Inne teunhay. Aa 2 nesuthy consumahen mnie thurcFont, amquigeite clamnand uslll vase, Ct use, and CONPE QUENCES Of BACESS DEMAND ‘StrunTiOg: tr Te steeas demand sthaten ain ctanemy lenan the fone pesnerintegte a fon sung 5 FIMROME IN THE GENERAL Prieg leven. he An tateae daimend sibvoslton inplita ah eSytieid pc Beawee oven and alse fre rand Posy (arto OS Geeds and The Pht, tue of eukot)inan etenomy tenet conden meee oa ae faumune open the genurat Paice lel ma mn me tone ye ond tn * tashonant condition ermengis in the canon: 1 Mes, on se: TRcREAS® Ih TPT eRIcas He ENT DEMAND 68 ® BS @RLATIONARY A thal doning the de uinsuil OF ce etree ah an eB ne Pails shedh oeblem of deMleienk ontsus In Me ee on (AO) Fells shenk 60 the eiearanne ending ts the Aill- en elyecaant Kash ies! Foil ermplyoment (eae As-An> 6 nt level of output) Ad 13 nok Cy eathed Ce et erature nthe etonorny: Hunt, Suen sme Used rin Ferment 19 On Cte mony ee any tounhay . Thus, if gr < demand betame less tmp cunurt level oF aurpe oF equal Ubi, smge deanna wider Sa Dade nahin VA valor Wor inyrnae ae la W'jyeurr a spore: cyram be anvenae laa mor DERABNT DEMAND 6@ A OB mALATIONARY mmenkonsd that duning the douinsullial ‘ OF es besines - a Lmand anise I an eBnorny Pails wheth St te sae ge “ eee Parsblem of dePleint ontses In the ee ecg : son gate demand (Ad) Falls shank o@ the maaimum foeahall| t a 3) councoponding ta the Pull= EMmplysement level, it fs : of dePeatnt demand pefictent demond = AD-AS SO E re puapendng ‘0 Pull cnpyennnna , defecunt demead 2 A3-AB> ” AO (ast Aal ~crmplyoem ent level of ovtpet). . luosk adequorte demand ts nek Creskd Pou the maximum i Jsond Senvitesin the etenemy: Hence,some Ruounces ve voute: eee ulustd em Unda eKused wok “2, - oneal | amex Kon In an cronomy leads te acontinvous Paull in fhe ‘ < ovlpul and emelySument in an etonomy «This Is ‘. prdned os ecanomic dePlahen tn any counhay «Thus, iF He jaagovte wees D upindihuae ov the ogquugate demand beteme less than te Ho ores cwsslahte ok ne Pulls emplounert level oP eutpul, (ene an utahonany gop thank aot the Pull cmeatyecmnen k level of equi Ubuium nokenel (cate er eee gee Capes (eat ),r0 cw te > (cer)? Corte ' @ dePtakenan hae gee vickas Fea shout fallen Me Pausent quegarte i Wega EAP ane Cea te] in nelahon be the agguegeted ceed BNE moin ted He Pall = tamaly @ unvent land of ovkoot (Lt4 2) p J. PulcLiPs curve: bee res ea rank thse, Ve tsa quaph ete tnuuse ne lahonshie estndue eatin hie du hee oun Cornea, The trehange vaste Va Hoe Paice oF one Counhals cunnenes the, aol hich hse cumendia om hnaded fon cath oth. pais om monkeh -dehamind, exchange noter ane > exchanged naskes cle ham nv ep bythe onugulated Pontes of “a opp and demand. : Exchange nates movemnmnts have Impoutentlenpascts on iments, €xpouts and movuminls oF Capital beheten Counhan. 1 a wonld eshine tine ane only Hwe tounkaten, the Unikd Sheskes ond Builein, tne demand fou founds 1$ tempnised of heldens of ale tans wsrahing tr accune founds The supply of Pounds is comenised oF holders of Pounds Seeking be exchange them Pow dotlans . ©The demand Pon founds in the Forel exchange monket ne Maclabonanip bthucen the Hm Cater of Founda (dollans fen foura ) (3/6) and the quently of founds demanded. tahun the Paice of founds Palla, Qaitinh- mode goeds and Soule appeon lees cx pemive f US b TP Bull Palin one content, US. buyers usill buy rove Bwihshgeeds ond seuiees, ond He 4 vanbty * demonded oF founda ull Baie snise. a 4 2 = ho eae oP founds In the Posign exchange masléet shows : loca oehocen the Price of Poonds CAalaar fer Foard) ($/) and ~ quant hyel foun Suppitd ir Price of founds, a ° Quenbly & Pounds - 3 3 2 i = + Z é ° winen me Price & founds wiser, tne Brith Cone bloin mone dettans fen tach Pound. This rears thask US madé pesdaond Senuiter appear les expensive to Buitslh buyers. Thus, the quankly oF founds supplied b Ykely 40 wuse ust the exchange Rak. The equilbuiurn rae ane Oceuns ast the Fant ast eulvdh fe {vonk hy clemnanded of a tign cumenty Cauals He quan of (urneny supplird a < & 8 = & é % 3 Line * ——> Quanthy oF Pounds . An FeiPosts, ree peneiaen - founds ell couse Me finice of Pounds dettan. MAO Repuceioste (Fastin yastue) with mnpeet hy th ©Rn extens demand fou founds wit! Cause He Paice of founds oF fo wise the vt fo the delta | | OPPO pene daile (ivsein voituc) Colina PIREO Vs. FLEXIELE ExcHANa® RATE (ime): o r - Gras POA CompARION FIFO BACHMANN RATE eLBAGLO Gacwane ‘ Meaning - Fined Reali wale Flerible ¢ xchange AefU3 foo walle whith the Peas marke theo qevmamut sela and ssecowding fo the maintains at thesame — foueen. lewel. (ano =a Crovmnmenk en ceobnerl Benard and Supply Fences. bank Devartuakon and Reualhon Cepucdahon and Apprcdal Tass place when Hine 13 Yen Common. oumar’ aie crongein 4 A Crovenement pores OPtnasken ean vontalion opuraskes by numave exhy 'm aupely of motes deem Ina lmbitlhy by change Yn Somnath inhenat naste ond Fowen snake. et IMPORTANT RUBNTS The’ Pan Voslue’ Bysken that tnovened exch. vrarke ead in plasce- The found skating wan selec hd apan *inkavenkon cunneney! The andion SRupee's Exkomal fan yootue asao hed te gold Rentruer. The Bue Hon -usoods hen, aad ono \ee dour ocd mest o& jhe Nqnakouley exikd » ws hand aren aguced uponif (444 by hy AlUed nasloAS- The Inhana Monclony Fund (Ime) wan also a nunult of the Aue tron hen. 213 main alm ewan to Anovide aivatons on mon! poliun ke carth counhny ofa Hae wan « By 19, this aqueement avon deemed ebselthe . In December (11 Heine evar dnnecy Gnked fe the Pound Stuling « The Indien ceonomy wan Fading a seme iva in fl waslance oF Payments (OOP). andin had | Uribe Fomein erchange, andi) would nee Laat long: Kinase eronemic lobes asen Ntvodvieed Lyy the trims Finance nts bag | Manmohan wegh loans wsene bein Ane m me Me et Peagtd. on faed, the exchenge Wwe Syskm esao Wemeved. The wake owe adjuoted downwand fuite Sate by VE anal once lay 7 Thine Shee Smenkal to ensure thart Puceious Crcharge MEMMVED ENE ROE depleted: The Mren~ Croveanment Pinasliy deudel 4 lek mankeh Powees, deide tx chang. © ® boansikon Sysken= denmed Ip, Fachange Raste Management Systm Se CERMS, eran schid place. Yas LE 89 @ ual exchange warke regime: week Untied ty Pucwal Maaketh Rake. Lhis this syst trait Conkromh ths day. 3 Get Vs. gop (ime): ‘Sho FOR CMPRIEN —- BMLANCR of TRACE BrLnnee oF lance. oF Tur Ine Balance of Payment ise coum hace te Steokemen that Keeps Counha's exponk andimpent Anat of aill econcate novcton> dom: boy wong atte the wera: Mtns econ aC cree wlth he cnuneioet ie Tuensachons inelukd h — Tnremasctions anc lasted bh Beed> only looth goods and suuires one wetounded. Peat nok \meluded in the Pane Included in Ra lance. Balance of Tnade OF Pasjerun bs Tt given @ fonhasl view Trivers oclean view of oF tne Counknys erennmic the eranemic Posten of Stabs Ie Countny « Tk can be Faxounasble, Both the neeipts and Untlavenable Pmeertef Payment stdey beter, ow lanted. THis.a Compenint of Cunmint Recount ond cument Account of Ralonce Capital Account oF Paymunk. PRPRRU ATION. va, ORUALUATION (ae): Base OR VALUATION of cuRRENCY) OR PRACIATION of CunREnay The meant Cwabakon means te lof tne une (owen the valve oft ™ teniog Comments an tompand ty — devastlumlion of tine the onetnwn Country's vee - oievinns | Ini the Pest weenie Cmmmsentts This dene by Hac Crovunemnt Thea dene be tn oom ] ase oF demand Sg | 37 he Inhanakonaul monlach. This dene by uning xed Th ia done by oring d.78 Fleaskne excl exchange noite 7. ae © CFheden C tenon Tis gust fem Yhout Rann Th effeels the owen, Foue lenge kom. Changes Tne lane Cined hme Ponik Tb ocuns on a daily . bet tt doau't ccumin we query: beois . GXCHANGE RATES AND THE GALANCE of TRADE: THE J CURVE 4 Trade: / (2846678 a to Gomhas athe me beginning °F the a. ° = T Change In the balance of Taibaatly the neqaokue ePfeek om the Race of Impovls ross dominate

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