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  As you well know, monetary policy has powerful effects on financial markets, the financial system, and the broader economy. Conversely, financial instability, by impairing the provision of credit and other financial services, can depress economic growth, cause job losses, and push inflation too low. Accordingly, financial stability, through its effects on the Federal Reserve’s dual-mandate goals of maximum employment and stable prices, must be a consideration in the setting of monetary policy. Against this backdrop, a natural—yet quite complex—question is whether monetary policy should be used to promote financial stability. This question is hotly debated in a large and growing academic literature, and any serious answer has to be subject to considerable nuance. At the same time, my sense is that the balance is clearly tilted toward the conclusion that macroprudential policies—through-the-cycle resilience, stress tests, and the countercyclical capital buffer (CCyB)—may be better targ

  Applied Economics Raffi Manzoor Applied economics is a field that applies of economic theories and principles to real-world situations with the desired aim of predicting potential outcomes. The use of applied economics is designed to analytically review potential outcomes without the "noise" associated with explanations that are not backed by numbers. Applied economics can involve the use of econometrics and case studies. ADVERTISEMENT HERE 👇👇👇 Apply for a decent Job Because economics relies on the interpretation of historical events in its theories, applied economics can lead to "to do" lists for steps that can be taken to ensure stability in real-world events. Although applied economics uses economic theory and principles, it is itself not a field of economics, such as neoclassical economics or the Austrian school. The use of applied economics may first involve exploring economic theories to develop questions about a circumstance or situation, and then draw u

  Perfect competion Is a market structure in which uniform price is charged for every unit of a good. Assumptions of perfect competition a. Homogeneous product b. Large numbers of buyers and sellers c. Free entry and exit d. Free mobility of factors of production e. Perfect knowledge Firm equilibrium in short run under perfect competition There are two ways for firm equilibrium a. Total revenue and total cost approach b. Marginal revenue and marginal cost approach Explanation a.TR and TC Approach According to this approach a firm will be in equilibrium when the difference between total revenue and total cost is maximum and firm will select the that level of output where difference is maximum. b . MR and MC Approach According to this approach a firm will be in equilibrium where the MR is equal to MC. There are two conditions for firm equilibrium i) Necessary condition MR=MC ii) Sufficient condition At equilibrium point slope of MC must be greater than slope of MR, in other words MC must

While Keynesian economic hypothesis was being applied in a large portion of the world's significant economies, the new idea of microeconomics, spearheaded by Marshall, was additionally grabbing hold in economic circles. The investigation of more modest, more engaged parts of the economy, which beforehand were not given significant significance, was quick turning into an indispensable piece of the whole economic picture. ( For additional knowledge, see: How Influential Economists Changed Our History.)  Microeconomics had useful appeal to economists since it tried to comprehend the most essential hardware of an economic framework:  consumer decision-making and spending patterns, and the decision-making processes of individual businesses. The investigation of buyer Decisions  uncovers how the cost of items and administrations influences request, how purchaser fulfillment – albeit not correctly quantifiable – works in the dynamic cycle, and gives helpful data to organizatio

Indian Economy - Micro Economic aspects  · Needs are the essential things needed for human endurance. What's more, products and services are created to fulfill those fundamental necessities. Each person in either way is occupied with the creation of products and services.  · As assets are restricted; hence, portion of the assets and the dispersion of the last blend of products and enterprises are the essential monetary issues of our general public.  · The fundamental monetary exercises of our general public are creation, trade, and utilizations of merchandise and ventures.  · If creation doesn't fulfill the need, it prompts shortage.  Depiction: Shortage   · These issues can be unraveled either by an individual conversation with the person (whose requests should be satisfied) as done on the lookout or by an arranged methodology started by the focal position, i.e., the public authority at the middle.  Sorts of Economy   · In view of the attributes, an economy is part

  Factors of production :   ➡ By Raffi Manzoor Production involves the creation of products and services by using scarce resources. Producers must exchange the income they earn for the scarce resources they have to enable them to supply . Therefore, both parties, producers and consumers, must exchange something they need for something others want. There are four types of scarce resource used in the process of production. Land and natural resources This includes the land on which production is located as well as the resources contained within the land, such as metals, minerals, and oil. The environment - the air, sea, rivers, and forests – is also a scarce resource. Human capital This includes the worth of human skill and physical effort that's available to an economy, and is more commonly mentioned as labour. Real capital This includes all man-made assets which are created to assist produce goods and services, like machinery and equipment. It also includes stocks of raw materials w

WHAT IS ECONOMICS ?  What does one think Economics is? Is it a tough science employed by bankers to form money? Like alchemists who conjure gold? Is it about politics and accounting? Though its ancient etymology defines it as “the science of wealth” its meaning has expanded over time, and it's now a science of the factors influencing “well-being” as formally described by the standard Assurance Agency for education . How is economics different from other social sciences? Economics borrows from multiple sciences e.g. sociology or law, to elucidate why and the way people act to enhance their well-being and wealth, e.g. behavioural economics borrows from psychology and history to analyse how past experiences may shape expectations about the longer term . Economists basically solves the problems by following methods : ➡1. Abstraction:  breaking down a drag into its various components, as any thing has various factors influencing it, e.g. any business is travel by numerous pe

Check your knowledge of economics by a series of MCQ tests uploded on daily basis.  The below MCQ test series is conducted by Watsapp group ECONOMICS CLASS .  These MCQ tests will help you in NET, SET and other competitive exams.  These economics MCQs are from fundamentals of economics, basic economic theories, micro economics and macro economics. Shortly we will also start paper A of NET/SET exams.  Do subscribe this blog to get notified when we post new.  The link of MCQ test is given below, just click on it to start your test.  Best of luck .