Credit means loan and credit expansion means that people are taking more loans. The increase in loans for the private sectors, individual, and public organisations is credit expansion. Credit to GDP ratio is seen as an indicator of credit expansion in the country. Objective of Credit Expansion The stated objective of Credit Expansion is to […]
Economic growth is the continuous improvement in the capacity to satisfy the demand for goods and services, resulting from increased production scale, and improved productivity. The key sources that determine economic growth are Capital formation, Capital-output Ratio, occupational structure, Technological progress etc. A brief description of these is as follows: Capital Formation Capital is the […]
There are many theories and models to explain the process of economic growth. These theories are also called growth models. Growth models set out the quantitative relationship among the critical variables in a rigorous form. Harrod, Domar and Harrod-Domar models are some of them which might be relevant for general understanding: Harrod Model (HM) R.F. […]
Economic Growth is increase in the capacity of an economy to produce goods and services – compared to one period to other. In simplest terms, it is the rate of change at which an economy is growing year after year or percentage change in the GDP of the country. It’s a narrow concept which focuses […]