IFSC Code

IFSC Code

IFSC code is the acronym that stands for Indian Financial System Code. In the Structured Financial Messaging System (SFMS),it is being used as the addressing code in user-to-user message transmission. The Payment System Applications such as RTGS, CFMS and NEFT developed by the Reserve Bank of India use these codes. Without the IFSC code the fund transfers through RTGS is not possible. Some times to add a beneficiary in net banking we require IFSC code. IFSC code is a unique digit identifying the branch names of the different banks.

Cost Push Inflation

Cost Push Inflation

Cost-push inflation, also called "supply shock inflation," is caused by a drop in aggregate supply (potential output). This may be due to natural disasters, or increased prices of inputs. For example, a sudden decrease in the supply of oil, leading to increased oil prices, can cause cost-push inflation. Producers for whom oil is a part of their costs could then pass this on to consumers in the form of increased prices. 1973 Oil crisis is a typical example of cost push inflation where the OPEC countries controlled the oil outflow from their reserves(oil embargo) there by pushing the oil prices of the European countries which in turn had led to inflation.

Hyperinflation

Hyperinflation

Hyperinflation is inflation that is very high or "out of control". While the real values of the specific economic items generally stay the same in terms of relatively stable foreign currencies, in hyperinflationary conditions the general price level within a specific economy increases rapidly as the functional or internal currency, as opposed to a foreign currency, loses its real value very quickly, normally at an accelerating rate. Typical example is Zimbabwe which devalues its currency consistently i.e printing more and more money there by pushing its economy in a hyperinflation state where Zimbabwe dollars are no longer preferred by the sellers who prefer south African rand or American dollar.

Agflation

Agflation

Agflation, a term coined in the late first decade of the 21st century, describes generalized inflation led by rises in Agricultural commodity prices. In the United States, agricultural prices are not generally factored into core inflation figures. The term describes a situation in which "external" (i.e. Agricultural) price rises drive up core inflation rates. Agflation is not applicable to countries like India where agriculture is the mainstay of the economy.

Deflation

Deflation

A general decline in prices, often caused by a reduction in the supply of money or credit. Deflation can be caused also by a decrease in government, personal or investment spending. The opposite of inflation, deflation has the side effect of increased unemployment since there is a lower level of demand in the economy, which can lead to an economic depression. Inflation reduces the real value of money over time; conversely, deflation increases the real value of money – the currency of a national or regional economy. This allows one to buy more goods with the same amount of money over time.

Inflation

Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Inflation is a indicator of the purchasing power of money and an indicator of the developing society. For example inflation in Sweden is around -0.3 (est) while the inflation in India is around 9.7 (est) which explains the developed country and the developing country tag associated with the aforementioned names.