Stagflation
Posted inCurrent Affairs GD Topics Economic GD Topics

Stagflation

Till the 1970s, it was believed that inflation (increase in prices) and unemployment are inversely proportional. Because, if the unemployment rate is high, common people have low purchasing power, and hence the demand for goods reduces, thereby the prices will either reduce or stay constant.
global energy crisis
Posted inCurrent Affairs GD Topics Economic GD Topics

Global energy crisis

In 2020, lockdowns were imposed in many parts of the world due to the Covid pandemic. After the lockdowns are lifted, the demand for electricity increased as the economic activity returned to normal. But the production did not increase as per the demand due to several factors such as labour shortage and supply chain disruptions.
War crimes
Posted inCurrent Affairs GD Topics Social GD Topics

War crimes

War too has rules. Attacking civilians is a war crime and soldiers can be punished for doing that. Not just the soldiers, but the persons who have commanding authority will also be punished if they have commanded or ignored the soldiers’ war crimes.
Internationalisation of the Rupee
Posted inCurrent Affairs GD Topics Economic GD Topics

Internationalization of the Rupee

Sanctions on Russia for its invasion of Ukraine resulted in the possibility of trade agreements in currencies other than the US dollar. This can negatively affect the share of the US dollar in international transactions, which can dilute the dominance of the US dollar in the global financial system. So, making trade agreements with other countries in Rupees can increase the share of the Rupee in international transactions and hence can pave a path to the internationalization of the Rupee.