Inflation, Depression, Recession and related terms and concepts like deflation, disinflation, reflation, stagflation, Philip’s curve
Types of Inflation – based on the rate of growth of the prices– creeping, trotting, galloping, hyper-inflation
Types of Inflation – based on the causes– Demand-pull, Cost-push, Structural, Speculation.
Impact of Inflation on Indian Economy, different stakeholders in the economy. Is a minimum inflation necessary? If so why?
Inflation measurements like CPI, WPI, GDP deflator
Composition or what constitutes these indicators
Their merits and demerits
Which measurement is better indicator of inflation and why? Which index is used to measure inflation in India currently?
Base year from which it’s calculated.
What is this Base year?
Why does Government change the Base Year?
What impact it has on the economic growth or inflation?
Example: In WPI there are totally 676 items, out of that 20% weightage is given to Food, 14% to Power and Fuel, 66% to Manufactured goods. It does not include Services. Base year for WPI is 2010-11. It is published by Ministry of Commerce and Industry
Role of Government and RBI in controlling inflation
09th July 2015
SUBJECT & TOPIC :
Economics – Money & banking System
FOCUS ON:
Role and functions of RBI
Monetary Policy/measures taken by RBI like Bank rate, repo rate, reverse repo rate, Statutory Liquidity Ratio (SLR), Cash reserve Ratio (CRR), Liquidity Adjustment Facility (LAF), Marginal Standing Facility (MSF)
Why are these measures taken?
What impact it has on the Supply of money, Inflation and the Economy?
Different types of Banks and their functioning– Commercial Banks, RRB’s, Development banks, NABARD, Co-operative Banks, Development Banks, Merchant Banks, Non-Banking Financial Company’s (NBFC’s), Regional Rural Banks (RRBs) etc.
Functions of these Banks, to whom do they lend?
How are these Banks regulated? Concepts like priority sector lending
Example: NBFC’s are regulated by RBI, unlike the normal banks, NBFC cannot accept demand deposits (DD); NBFCs do not form part of the payment and settlement system and cannot issue ‘cheques’ drawn on itself.
Banking reforms like Bank Nationalisation (1969, 1980) Basel Norms etc.
Why were/are these reforms needed?
What was/is the Purpose of these reforms
Understand Key-Terms– Financial Inclusion, Fiscal Consolidation, Narrow Banking, Non-Performing Assets, Shadow Banks, Weak Bank, Core Banking, Bank Run, Priority Sector lending, Capital to Risk Weighted Assets (CRAR) etc., and other related concepts related to Banking – what steps have been taken by the Government and RBI in this regard.
Steps taken by government with regard to Financial Inclusion.
Example: Introduction of Business Correspondent model in rural areas or Woman only banks, Jan Dan Yojana, Micro-finance, Mudra Bank etc
Recent Committee’s setup with regard to Banking Reforms and its important recommendations
SOURCES TO REFER :
Macroeconomics- Class 12th , NCERT
NCERT 11th – Indian Economic Development
NCERT- Class 9thand 10th (for basics)
Indian Economy – Ramesh Singh
Sriram’s IAS Economics Notes
10th July 2015
SUBJECT & TOPIC :
General Science and Technology
FOCUS ON :
The questions from this section are based on your general understanding and awareness. It will be more of application oriented and latest developments on the lines of UPSC Standards.
SOURCES TO REFER :
NCERT– Class 6th to 10th and Biology- class 12th
Newspaper- The Hindu, Times of India, Down to Earth and Science Daily
11th July 2015
SUBJECT & TOPIC :
Environment /Ecology – Environmental Legislations- National and International
FOCUS ON:
The questions from this section are based on your general understanding and awareness. It will be more of application oriented and latest developments on the lines of UPSC Standards.
SOURCES TO REFER :
ICSE books- class 9th and 10th
NCERT Class 11th– Environmental Geography and NCERT Biology-class 12th
NIOS- Environment Notes
Newspapers: Times of India, The Hindu and Down to Earth
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