Economics

Fully revised with the updated study material by ICAI (released in December 2020) and is tailored to suit the final year students of CA Final who are appearing for May 2021 examinations or later, under new syllabus. This edition also incorporates several additional problems including those asked in the November 2020 examination. It also incorporates solution to the January 2021 (November 2020 – Cycle II) examination question paper. Minor typographical errors have been corrected in the chapter of Equity Portfolio Management and other chapters. As ever, this book tries to balance the needs of those group of students who want to use this material just for passing the examination and the needs of those group of students who wants to learn in detail and pass the examination with high marks.

The teaching of Economics in business schools is constrained by two major factors. First, most Economists who take up teaching are trained in traditional Economics. They are unable to integrate economics with various functional areas of Management Science. Though Economics is naturally the most integrotive principle between various functional areas of Management, Management theorists have found Economics too abstract to be useful. At the same time, economists have always tried to run down the case study approach as one lacking in rigour and generality. This book is an attempt to bridge this great divide. It deals with various features of Macro Economics including output, prices, interest rates, exchange rates, balance of payments and other related macroeconomic variables. All these tools are then integrated together in the last chapter which helps the student, Managers and Executives to see the Economy as a whole. This perspective is important because it helps a manager to see the bigger picture of the Economy. It is the changes in Macroeconomy due to various Business Environment trends that define the landscape of any business. The study of macro economics thus becomes important for everyone wanting to understand business. This book is practical in approach and is intended for students of business, Managers, Consultants and Executives. The concepts are presented in a manner that are easy to comprehend without diluting the theoretical rigour. Each chapter in the book stands out to be a tool in analyzing the macro economics. I hope my readers will find it useful, and not to say their feedback is welcome in order to further strengthen the book. I wish fo thank several individuals who made this book possible. Particularly, Dr. V. N. Patankar, Dr. Rajan Saxena and Dr. H.H. Mankad, my colleagues at NM1MS who over the last few years made me understand the business of Economics. I would also like to thank rny wife Sangeeta and son Shanmukh for their support in bringing out this book. Finally my special thanks to Neesha Rebello and Jigna Patel for help in typing several drafts of the book before it took this final shape. Dr. Rakesh P. Singh About the Authors Dr. Rakesh P. Singh is Ph.d in Business Forecasting and a Gold Medalist in MA Economics from University of Mumbai. He is the recipient of the coveted Asha L. Datar Gold Medal for Standing first in whole of MA examination in the year 1989. Dr. Singh is currently the consulting Dean of the Podar World College and is adjunct professor of economics and Strategy at SP jain Center of Management Singapore and Great Lakes Institute of Management, Chennai. He has worked with reputed institutes like Indira Gandhi Institute of Development research, NMIMS, SPJIMR and Great Lakes Institute of Management where he is now o the academic advisory board. Dr. Singh is widely published in both national and international Journals. He is on the editorial board of a number of journals. He writes frequently in business dailies and magazines. He has been a consultant with a number of organizations like Syngenta, Bayer, General Mills, Eureka Forbes, HDFC, Bank of Baroda, Rallis and Times of India. He has also worked on a number of Government bodies as member and consultant.

Satchidanand Pradhan is a Technical Analyst and an active full-time trader. Having completed his graduation in the pharmaceutical sciences from Mumbai University, he started his career in the pharma industry.  Hemant Kale is a Technical Analyst and a Financial Planner. He completed his graduation in Commerce from Sydenham College in Mumbai. His academic career was very bright having been a Mumbai University rank holder.  Dr. Shrirang Joshi is a Technical Analyst and a Psychiatrist. He graduated in medicine and specialized in Psychiatry from Grant Medical College in Mumbai. He is practicing Psychiatrist and a Lecturer in Psychology.