Doubt Clearance Thread: UPSC 2021
"When in doubt, observe and ask questions. When certain, observe at length and ask many more questions."
Created this thread as a one stop solution for all members so that all the doubts wherein any conceptual clarification is required can be solved here.
THE_MECHANIC,THE_MECHANIC,@Shailputriwhy not D. c is obvious, msp causes inflation by raising cost of food grains. But doesn't higher msp incentivises farmers to grow more of the crop ,hence leading to increased gdp.Maybe their logic is even if food grains increase gdp may not increase due to fall in production in other sector ?
C is not obvious to me. I have marked 'D'.
THE_MECHANIC,@sjerngal How? My explanation is MSP -->inflation (cost push) -->people buy more expecting higher price in future -->higher GDP. This is not demand side inflation where more money in economy so RBI should increase rates (as given in the solution). Could you please explain...
My simple logic was that MSP is being increased since many years now, whereas our GDP growth rate hasn't been impacted positively.
Honestly, I did not even go too much into it. For me, MSP increase--->Price increase---->Inflation increase---->Rbi will increase interest rate.
If interest rate is not increased, there will be more money in circulation--->more incentive for vendors to increase prices of commodities--->inflation further increases.
Also, I dont fully agree with the logic that inflation will cause people to buy more. I mean it is a possibility, but there is an equally likely chance that people don't have the purchasing power to buy at the inflated cost. In that case it will not lead to increase in GDP.
THE_MECHANIC,@sjerngal How? My explanation is MSP -->inflation (cost push) -->people buy more expecting higher price in future -->higher GDP. This is not demand side inflation where more money in economy so RBI should increase rates (as given in the solution). Could you please explain...
My simple logic was that MSP is being increased since many years now, whereas our GDP growth rate hasn't been impacted positively.
Honestly, I did not even go too much into it. For me, MSP increase--->Price increase---->Inflation increase---->Rbi will increase interest rate.
If interest rate is not increased, there will be more money in circulation--->more incentive for vendors to increase prices of commodities--->inflation further increases.
Also, I dont fully agree with the logic that inflation will cause people to buy more. I mean it is a possibility, but there is an equally likely chance that people don't have the purchasing power to buy at the inflated cost. In that case it will not lead to increase in GDP.
Ok. I get your point.
So, inflation rise (irrespective of reason) -->RBI reacts with a rate hike. Google search tells me that this happened in 2018.
Thanks!
sjerngal,THE_MECHANIC
sjerngal,
Dionysus,sjerngal
Steph_Curry,
Can someone please tell me where can I find topics like Sautantrika, Sammitiya, Sarvastivadin (buddhist sects ) and Sthanakvasi etc sects of Jainism?
I can not find them in any NCERT and not even in Nitin Singhania. Yet, I find it asked in almost every test series.
This is giving me a different sort of anxiety now..
New NCERT you may get not the old ones
Could someone give the name of a case filed by an Indian company against a foreign government?
Interesting question.
Section 86 of the CPC does not apply to commercial transactions which are entered into by a foreign government corporation/entity.
SC in Ethiopian Airlines v. Ganesh Narain Saboo, which was a in relation to a case filed under the Consumer Protection Act 1986, dealt with the question of whether the protection of sovereign immunity was applicable to such cases or not. SC held that the Consumer Protection Act, 1986 and the Carriage by Air Act, 1972 were special statutes and the proceedings thereunder were not governed by the CPC.
Imomf,
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