prep4ias

Understanding Bagehot theory of Central Bank

Understanding Bagehot theory of Central Bank 7

The Bagehot theory is considered very important in the banking and financial models. The theory explained how central banks can play their parts when a bank or company is on the verge of solvency. The central banks must create conditions safe enough for firms and banks to operate in the economy. In times of financial ... Read more

Understanding the theory of Conspicuous Consumption by Veblen

Understanding the theory of Conspicuous Consumption by Veblen 8

In this article, we shall discuss the topic of conspicuous consumption, a concept proposed by the famous economist Thorstein Veblen. He proposed that many times people spend on certain products to have a better social standing. He backed his theory with many economic and human psychological factors. What is Conspicuous Consumption  It is human psychology ... Read more

Welfare Economics: Pareto Efficiency, First and Second Theorem

Welfare Economics: Pareto Efficiency, First and Second Theorem 9

Welfare economics is a branch of economics that takes into consideration the benefit and well-being of society. Welfare economists believe that only economic progress and growth is not sufficient for development, instead, social growth and social well-being are just as important a factor. In this article, we shall carefully study the concepts and teachings of ... Read more