Archive |

DIFFICULTIES   IN    THE    MEASUREMENT   OF    NATIONAL INCOME   The correct estimation of national income is by no means an easy task.   Difficulties   of   various   kinds   are   generally   faced   in   the measurement of  national  income. These difficulties may be classified into two categories: (i)      Conceptual difficulties or Theoretical difficulties, and (ii)     Practical difficulties. While   the  theoretical  [...]

Flexible Exchange Rate System: Under the flexible exchange rate system, exchange rates are freely determined on open market primarily by private dealings, and they, like other market prices, vary from day-to-day. Under the flexible exchange rate system, the first impact of any tendency toward a surplus or deficit in the balance  of payments is on [...]

Fixed Exchange Rates Countries following the fixed exchange rate (also known as stable exchange rate and pegged exchange rate) system agree to keep their currencies. at a fixed, pegged rate and to change their value only at  fairly infrequent intervals, when the economic situation forces them to do so. Under the gold standard, the values [...]