Tuesday, April 3, 2012

A Simple Diagram of Relation between Repo Rate and Inflation

Source : RiskBank

The Atlas of Economic Indicators: A Visual Guide to Market Forces, and the Federal Reserve

The book is written in a very simple and lucid way .  All the key statements/theories  are duly supported  by appropriate visuals along with real time examples.  As the name suggests the book deals primarily with the key economic indicators used for assessing the health of the economy.   Various Classifications and the Sub-categories are also presented in a very clinical way . What captured my attention is that the equations and the basic definitions are also  presented in a pictorial manner which  makes it easier to visualize and grasp the essence of the topic. The author has made a point  that this book can be used across a varied class of users  including those who are not from the financial background.  . In a nutshell ,  I will recommend this book to all those who are looking for a book to read about the basics of the Economic Indicators.
Title : The Atlas of Economic Indicators: A Visual Guide to Market Forces, and the Federal Reserve
Author : W. Stansbury Carnes and Stephen D. Slifer
Reference link on Amazon : http://www.amazon.com/Atlas-Economic-Indicators-Federal-Reserve/dp/0887305377

Economic Indicators : Debt/GDP Ratio

Ratio of Debt to GDP is one of the imp factors from economic point of view, used to gauge the economic health of the country. Usually countries strive to have this ratio as low as possible so as to avert such financial and unexpected circumstances.
To start with , lets understand the concept of  GDP   -In a simple way, it’s summing up what all the people earned OR spent over a definite period of time .Logically; both the measures should arrive at the same conclusion.
Alternative Definition is: Gross domestic product (GDP) refers to the market value of all final goods and services produced in a country in a given period.
There are multiple ways of calculating this GDP. For details on how to calculate, click here