Economics of Money and Material.

Economics of Money and Material.

Management Accountant-an accountant of the future for Governance-Both Corporate world and the Government


Give and Take Economics-Can we Do away, with proper (Resource Mobilisation and Utilisation Mechanism.)Skewing of Money with Goods and Service

Monetary and Fiscal Policy Review.
Money policy=Supply of Money and Interest Rates.
Fiscal policy=Tax and Non-tax Revenue and currently disinvestment of assets.

Indian Economy
1.Population.2.Demographic Spread.3.Community Imbalance.4.Demand Gap.5.SupplyGap.6.Role of Government.7.TraditionalMoney and fiscal policy and Ramification8.New Approach.

Population.

•When we think of Money we have properties like -Medium,Measure,Standard,and Store.
•When we Think of Goods and Services we have Properties like –Consumption,Generation(Value addition),Destruction.
•When we Talk of Population we Have properties like- Purchasing Power,Disparity in Income and consumption Levels.
•All these Parameters are primary for giving directions to the economy.


Demographic Spread.

•Space of a Polity is varied from surplus to deficit and the populace also is spread across the land in a pattern from plenty to scarcity.
•Money is also spread ununiformly from plenty to scarcity.Money theory that so long as money is issued for production of wealth there is no inflation is an ideal .Economics of Imperfection partends theory and falsify economic principles.
•Goods and services are also impacted by erratic distribution.

Community Imbalance.

•Population also impacted apart from demography the community of plenty and community of Pauperity.
•Money also do not circulate and is cornered and linear equation of multiplier effect cannot be established where Hoard money is sometimes equal to circulated money.
•Goods and services are subject to artificial scarcity often and linear model of demand- supply is only ideal.

Demand Gap.

•Resource Mobilisation is a technique of filling the Demand Gap.
•Economies of deficit are often economies of surpluses.This imperfection is because of lack of identification and allocation.

Supply Gap.

•Resource deliverance is opposite to Mobilisation where Resource available wait for consumption.
•Matching of surplus with deficit is often not attempted.

Role Of Government.

•Government has Greater Role to play in resource assessment .
•Money theory that supply of money is equated with production of goods and services should be scrupulously employed and National Investment fund should be augmented with printing of notes and focused towards building additional capacity for production of goods and services.
•Money not in circulation is a waste since it circumvents multiplier theory and egalitarian distribution theory such moneys should be identified in terms of percentage.
•Taxes should not be the means of generating resources but a means of ensuring egalitarian distribution of circulating money by withdrawing the creamy portion from the haves and recirculating among the havenots.

Traditional money and fiscal policy Ramification.

•Money policy concentrates on readjusting inflation and interest rates.
•Fiscal Policy on public funding measures.
•These are good at macro economics in Ideal situation of perfect economy.
•New thrust areas should not on money and finance which is limitless for the economy but spread and idleness identification and hidden surplus in a deficit state.

New Approach.

•Resource Mobilisation should be on identification of net-surplus resources and channelising it to National investment.
•Identification of Non-performing money and estimating deviation and augmenting money supply to build resources.
•Taxes should be for identification and withdrawal of anticipated creamy money which will not perform linearly and redirecting it for performance.
•Thank you.