“In an interconnected world economy, regional conflicts increasingly generate systemic financial risks.” Examine this statement. Assess the impact of such conflicts on global investment flows and interest rates. Outline policy measures to mitigate these risks.

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment Q5. “In an interconnected world economy, regional conflicts increasingly generate systemic financial risks.” Examine this statement. Assess the impact of such conflicts on global investment flows and interest rates. Outline policy measures to mitigate these risks. (15 M) Difficulty Level: …

“Low inflation is not always a sign of healthy demand”. Analyse this paradox in the context of India’s recent inflation figures. Evaluate the potential risks of prolonged disinflation. Suggest comprehensive policy responses to address both demand and supply-side vulnerabilities.

Topic: Indian Economy and issues relating to planning, mobilization of resources Q5. “Low inflation is not always a sign of healthy demand”. Analyse this paradox in the context of India’s recent inflation figures. Evaluate the potential risks of prolonged disinflation. Suggest comprehensive policy responses to address both demand and supply-side vulnerabilities. (10 M) Difficulty Level: …