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DAILY NEWS ANALYSIS

  • 03 February, 2021

  • 2 Min Read

Interest Rate-Growth Differential

Interest Rate Growth Differential

"If the interest rate paid by the government is less than the growth rate, then the intertemporal budget constraint facing the government no longer binds."- economist Olivier Blanchard.

  • The “intertemporal budget constraint” means that any debt outstanding today must be offset by future primary surpluses.
  • If the Interest Rate-Growth Differential (IRGD), the difference between the interest rate and growth rate, becomes negative, the governments need not worry about deficits since the growth would take care of the interest payment obligations. This would ensure the sustainability of public debts.
  • The Economic Survey argues that in India, the growth rate is higher than the interest rate most of the time. So the conventional restraints on the fiscal policy may not be the right way ahead given the serious contraction of the Indian economy.
  • Washington Consensus - It is a framework that advocates for macroeconomic stability.
    • Macroeconomic stability roughly means that the borrowing done to finance the deficit of a country must be kept to a minimum.
    • This is a concept in peril as the economies of the world look to fight the after-effects of COVID-19 induced slowdown successfully.

Source: TH


World bank logistic performance index 2023

India is now ranked 38th out of 139 nations in the Logistic Performance Index (LPI) 2023 of the World Bank. From its previous rankings of 44th in 2018 and 54th in 2014, this is a notable improvement. Earlier, the Logistics Ease Across Different States (LEADS) Report 2022 was published by the Ministry of Commerce and Industry. About Logi

Smuggling of Gold

Airports discovered more than 63% of this illegal gold. The Department of Revenue Intelligence recently conducted the Golden Dawn Operation across India, seizing 101.7 kg of illegal gold valued at Rs 51 crore. Despite the fact that India receives a legal import of about 800-1,000 tonnes of gold each year, the illicit market is thought to be

India-Thailand Relations

Both parties expressed satisfaction with the ongoing bilateral defence cooperation at the 8th India-Thailand Defence Dialogue, which was held in Bangkok, Thailand. Cultural ties and mutual cooperation that have been shaped by thousands of years of lasting historical and cultural ties characterise India and Thailand relations. Highlight

Translocation of Elephants

The Kerala government's appeal of the order of the Kerala High Court is rejected by the Supreme Court. The Kerala government's appeal against the Kerala High Court's directive to move Arikomban (Wild Elephant), the "rice tusker" of Munnar, to the Parambikulam tiger reserve was recently dismissed by the Supreme Court.

Global Buddhist Summit

Global Buddhist Summit In order to improve diplomatic and cultural ties with other nations, the Ministry of Culture recently organised the First Global Buddhist Summit 2023 in collaboration with the International Buddhist Confederation (IBC). About the summit "Responses to Contemporary Challenges: Philosophy to Praxis" is

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