Month: October 2020

Factors: Cost of production (factor prices) Government policy (taxation and subsidies) Natural events (e.g weather) Goals of the firm Availability and cost of credit Transport and communication Prices of related products (substitutes and complements) Technology Future expectations Changes in the Read More …

Commercial banks and non- financial institutions may contribute to economic growth and development from the standpoint of their functions which include: Provision of safe deposits for money and other valuables Credit creation based on mobilization of savings Facilitation of the Read More …

Economic governance and transparency are about being open and exposed to constructive criticism and rating on matters pertaining to sound economic management and performance. In perspective are the following issues: Allocation/distribution of national resources Strict adherence to established economic management Read More …

Reduction of Government deficits has increasingly become an important issue in fiscal policy framework of developing countries because of some reasons like: Increased public debt which is costly to maintain – debt servicing is costly in terms of high interest Read More …

Budget deficit – the excess of government spending over revenue; the main causes of government budget deficits include: Commitment to social welfare programmes Demographic trends Fundamental macro economic shifts eg slower growth in productivity, volatile inflation, increasing structural unemployment; together Read More …

Hyper inflation-that which tends to get out of hand/control such that the value of money declines rapidly to a tiny fraction of its former value and eventually to almost nothing, so that a new currency has to be adopted. It Read More …