How Modern Monetary System has changed the economy?

Modern monetary systems are today followed in all the major countries of the world. this system contains the holders of money including businesses and governmental units;  commercial banks which are privately or government-owned), which works through a network of borrowing in the form of deposits, giving loans to individuals, firms, or governments, […]

Why Central Banks are Important?

In modern monetary systems, central banks play a crucial role in the dynamics that an economy experiences. Today, almost every country has its central banks that take care of currency and foreign reserve related issues of the country. Central banks also have an important role in decision and policymaking criteria for […]

Why is Demonetization Important?

Demonetization is the process of bringing changes to the existing currency system in a country in which the state decides to demonetize the economy as well as to encourage a cash-less economy. Demonetization, in itself, holds many advantages for the country. Why is Demonetization Important? Demonetization is one of the biggest […]

Why is there a Central bank?

The concept of central banks emerged with the establishment of the Bank of England in 1694. It is still believed that the concept of central banks did not exist until the 20th century. Basically, central banks were the solution to the problem of commercial banking systems at that time. The world recognized […]

What are transitional economies?

Transitional economies are also called emerging economies that are broadly defined as nations which are in the process of rapid growth and industrialization. Mostly these nations are transforming into an open market economy with emerging characteristics like the growth of the working population. What are transitional economies? The term transitional economies […]

How a Country Can Make Demonetization Policy Work?

Demonetization policy is implemented in order to bring changes to the existing currency system. Following the demonetization policy, a country can change the paper money to encourage a cash-less economy in order to boost the electronic money system. The basic reason behind the implementation of demonetization is to track black money, […]

Implementation of Monetary Policy?

Besides the importance of shaping monetary policy, implementation is also crucial. For developing countries especially, these monetary policies are important and it is also important to implement them during suitable times of economic activity. Implementation of Monetary Policy? Open market operations are one way through which the monetary institutions buy and […]

How Taxation Works for the Economy?

Taxation is a mechanism through which a state collects revenue for its expenditure from the people of the country. Taxation is not only applied to people but a state can also collect taxes in the process of trade as well. The state applies tariffs of the imports coming into the economy. […]

What is the black market?

A black market is considered a type of economic activity taking place outside the sanctioned channels of the government. The transactions of the black market usually occur “under the table” to allow participants to avoid price controls or taxes of the government. The black markers are also known to be the […]

What is the importance of Monetary Policy?

The mechanism of drafting, announcing, and implementing the plan of actions taken by the Central Banks, currency organizations, or other monetary authority of a country that controls the quantity of money in an economy and the channels by which new money is supplied is known as monetary policy. The management of […]

Where can we find the black market?

black market

Black markets aren’t chains of stores like the Walmart or a trading site like the Amazon and eBay. The most suitable definition for the black markets is that it is just a term used to refer to unregulated trading between two people. However, currently, the highest network of black markets is […]