Stagflation, a concept which did not gain acceptance till the 1960s is described as a situation in the economy where the growth rate slows down, the level of unemployment remains steadily high and yet the inflation or price level remains high at the same time. At the first instance, high inflation and unemployment or slower growth seem like opposites and mutually exclusive. It came to be seen in the 1970s as a situation when the the economy has low productivity and yet the goods are highly priced in spite of low unemployment. The term 'stagflation' came to be used for the first time in the Birtish Parliament by Lain Macleod in 1965.
ASBA (Applications Supported by Blocked Amount) is a proces developed by the India's Stock Market Regulator Securities and Exchange Board of India (SEBI) for applying to IPO. In ASBA, an IPO applicant's account doesn't get debited until shares are allotted to them.ASBA is a supplementary process for applying in public issues floated by the companies.
What are the key policy rates by RBI to influence interest rates?
The key policy or 'signalling' rates include the bank rate, the repo rate, the reverse the repo rate,the cash Reserve Ratio (CRR) and the Statutory Liquidity Ratio (SLR). RBI increses its key policy rates when there is greater volume of money in the economy i.e. when too much money is chasing the same or lesser quantity of goods and services.Conversely, when there is a liquidity cruch or recession, RBI would lower its key policy rates to inject more money the economic system.