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Analysis of Indicators of Economics

This document analyzes indicators of economics in India from 2008 to 2018. It examines the relationship between broad money supply, trade, and GDP per capita growth. Broad money supply is measured as a percentage of GDP. The analysis finds that as broad money supply increased, both trade as a percentage of GDP and annual GDP per capita growth increased, indicating that higher money supply is associated with greater economic activity and trade. It also finds that trade and GDP per capita growth are positively correlated, with increases in trade linked to increases in economic growth.

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karthick raj
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16 views12 pages

Analysis of Indicators of Economics

This document analyzes indicators of economics in India from 2008 to 2018. It examines the relationship between broad money supply, trade, and GDP per capita growth. Broad money supply is measured as a percentage of GDP. The analysis finds that as broad money supply increased, both trade as a percentage of GDP and annual GDP per capita growth increased, indicating that higher money supply is associated with greater economic activity and trade. It also finds that trade and GDP per capita growth are positively correlated, with increases in trade linked to increases in economic growth.

Uploaded by

karthick raj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Analysis of Indicators of

Economics
Introduction
• The Financial sector is the backbone to
Economic Growth of a country.
• Financial Stability Economic Stability
• Physical capital development through financial
institutions and Non - bank financial
intermediaries.
• TIFS(Trade In Financial Services) has an
important role in the imports and exports of
financial sectors.
Research Questions
• How Money supply affects the economic
growth and trade of a country?
• Broad money Vs GDP Per Capita
• Broad money Vs Trade
• Trade Vs GDP Per Capita
Methodology
Money supply
GDP
• Gross domestic product(GDP) is a broad
measurement of a nation's overall economic
activity.
• GDP=C+I+G+(X−M)
C=Consumer spending on goods and services
I=Investment spending on business capital goods
G=Government spending on public goods and services
X=Exports
M=Imports​
Bar chart
90

80

70

60

50

40

30

20

10

0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Broad money (% of GDP) Trade (% of GDP) GDP per capita growth (annual %)
Broad Money Vs GDP Per Capita
90

80

70

60

50

40

30

20

10

0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

India IND Broad money (% of GDP) India IND GDP per capita growth (annual %)
Broad Money Vs Trade
90

80

70

60

50

40

30

20

10

0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

India IND Broad money (% of GDP) India IND Trade (% of GDP)


Trade Vs GDP Per Capita
60

50

40

30

20

10

0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

India IND Trade (% of GDP) India IND GDP per capita growth (annual %)
Inference
• An increase in the supply of money should lower
the interest rates in the economy, leading to
more consumption and lending/borrowing.
• The exchange rate has an effect on the trade
surplus (or deficit), which in turn affects the
exchange rate, and so on.
• Exports are less than Imports, the net exports
figure would be negative, indicating that India has
a trade deficit.

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