Low interest rates from a certain level do not benefit but harm

-

Mumbai, Ta. 16 September 2020, Wednesday

It is not reasonable to take only monetary measures (related to lending) to get the economy back on track after the Corona epidemic disrupted growth. State Bank economists suggested that a proactive fiscal policy should be adopted for this process.

The prolonged lockdown in the country has hit the economy hard, disrupting all economic activities.

Not only will other monetary measures be implemented, including a reduction in interest rates, to revive the ailing economy, but it will also require a series of other specific measures.

Interest rates also have a limit. If it goes below a certain threshold, it does more harm than good. In a study conducted on low interest rates, economists said that low interest rates hurt the sum.

According to him, the lowest level of policy interest rates in the country is 7.5 per cent. While the Reserve Bank's repo rate is 3%. The Reserve Bank has so far cut policy rates by a total of 1.15 per cent since the Corona epidemic.

Rates were kept unchanged due to high inflation during the last lending policy review.

Economists have made it clear that further cuts in interest rates will have an adverse effect on the Indian economy. That is why an active fiscal policy should be adopted instead of reducing interest rates. It is necessary to increase the fiscal expenditure in the current circumstances.

In addition, in the current circumstances, financial incentives are the most effective factor. In India, as in other countries, immediate financial stimulus should be introduced. The companies and people there were relieved that the governments of the United States and Europe were adopting this route.


Comments

Post a Comment

Popular posts from this blog

Covid-19 effect: Significant increase in demand for second hand cars in the country

-
Image
Mumbai, May 26, 2020, Tuesday As lockdowns are being phased out across the country, the use of private vehicles using public transport to reach their destinations is on the rise. The increasing use of private vehicles has also increased the demand for cars, especially secondhand cars. Demand for second-hand cars is unprecedented. Inquiries for second-hand cars have almost doubled during the lockdown period compared to the time before the lockdown, according to a survey of about 100 dealers and car buyers. Demand for used cars at dealers has been strong in the last few weeks, and is expected to grow as the lockdown eases. Consumers are increasingly interested in buying second-hand cars, especially smaller ones, due to lower income levels and health-related safety, said an organized second-hand car dealer. Inquiries for a particular vehicle, which used to be around 15 per cent before the lockdown, have now doubled to 5 per cent. Inquiries for new vehicles have fallen from 21 per cen...
Read more

Information about soymilk and casein products

-
Image
- Industrial guidance - Dhiru Parekh Soymilk: Soybeans are converted to high-quality protein. So that high quality drinks can be made which can be easily digested. There is no difference between soymilk and cow's milk. So the conservative industries of milk processing are now using this milk to make yogurt and ice cream. Consumers also cannot tell the difference between ice cream made from cow's milk and from soy milk. Also, the production capacity of soy milk can be increased than that of cow's milk. And the price can be cheaper. Soybeans mainly contain two types of enzymes that are inactivated in the soymilk process. Leukoxidase that catalyzes the oxidation of fatty acids. And enzymes like pepsin, trypepsin are included in it. Which helps in digesting protein. Soyamilk powder manufacturing process: This is an electric pre-heater system. which basically allows fluid to flow easily in a stationless tube under low-voltages. which absorbs the energy flowing through the Ja...
Read more

Due to the ban, employment and economic activity declined by two to three percent

-
Image
New delhi date. October 7, 2019, Monday A new study has found that employment and economic activity have declined by two to three percent due to the ban. A similar situation has been observed in bank lending. The study found the decline to occur within two months of the notation announced on November 7. This is the first research on demineralization in which data on the effects of districts across India were collected. In addition to the districts, the effect of national level was also studied. Previous studies only examined the national level effect of demonitization. Thus, a full estimate of the overall effect is not known. As a result of the shortage of cash arising out of the blockade, the country's economic activity fell by approximately 8 percent in November-December 2 In the October-December period, bank credit has seen an impact of around two per cent. Cash pulls have impacted demand for a short period. The study found that there was a strong link between money and pro...
Read more