Economy Forward

  Economic Behaviours of the Public Such are governed by economic principles and laws. Economic principles (natural economic laws) represent natural laws relating to economic behaviours of the public. In contrast, economic laws are the statutory rules imposed by the state as to how people should control their economic behaviours in the common public interest as the state considers fit from time to time. Economic Principles The subject of Economics has evolved to document economic principles based on various assumptions relating to economic behaviours of people. In general, people act in markets as buyers (demand) and sellers (supply) competitively to get their economic needs satisfied with maximum benefits. Accordingly, all market participants are driven by the self-interest which in turn best satisfies the others’ interest as well than any rules imposed by the state to that effect if markers are free. The reason is that a person will end up satisfying his interest only if his act sati

  Rising Inflationary Pressures across the Globe During last few months, inflation as measured by the increase in consumer price index (CPI) has started rising rapidly over the inflation targets adopted in many countries. The increase in inflationary pressures is seen especially significant in developed countries operating with largely free market forces. At the beginning, central banks considered such inflationary pressures as transitory. Their reasoning has been that inflationary pressures were a result of global supply side bottlenecks and energy price hikes caused by the reopening of economies after getting the Corona pandemic under the control and, therefore, such inflationary pressures would fade away once supply chains are restored gradually.    However, many central banks now tend to believe that present inflationary pressures are at elevated levels persistent longer than initially expected and likely to continue in 2022 before they tend to converge around the target inflation