onomi on epts and erminolo ies 22.53
the IMF, the litigating creditors were concentrated
in the US, UK as well as the British Virgin Islands
(BVI)—the UK protectorate tax haven. Bush is The natural resource which has a finite but
being pressed by a motion signed by 110 MPs to indeterminate life span depending upon the rate
change the law which allows them to file cases in of depletion (such as coal, oil, etc.).
US courts—VFs contradict US foreign policy.
The situation of an economy when the output
Vostro is an account that one party holds for another. is increasingly produced from intellectual
With a view to give more operational leeway, the capital rather than physical materials–a shift in
RBI decided to dispense with the requirement production from iron and steel, heavy machines,
of prior approval of the RBI for opening and etc. to microprocessors, fibre optics and transistors,
maintaining each rupee vostro account in India etc. This is the weightless economy, i.e., the new
of non-resident exchange houses in connection economy which arrived in the US (specially) by the
with the rupee drawing arrangements (RDAs) end of the 20th century.
that banks enter into with them. The approved
dealer banks could now take its permission the welfAre economics
first time they entered into such an arrangement
The branch of economics which is concerned with
with non-resident exchange houses from the Gulf
the way economic activity ought to be organised so
countries, Hong Kong, Singapore and Malaysia.
as to maximise economic welfare. The idea applies
Subsequently, they may enter into RDAs, and
to the welfare of individuals as well as countries.
inform the RBI immediately.
This is normative economics, i.e., it is based
wAlrAs’ lAw on value judgements. It is also called ‘economics
with a heart’. This focuses on questions about
As per this law, ‘the total value of goods demanded equity as well as efficiency.
in an economy is always idntically equal to the total It employs value judgements about what
value of goods supplied’. For this to happen the ought to be produced, how production should be
economy should be in equilibirium. It also means organised, the way income and wealth ought to be
that if there is an excess supply of certain things distributed, both in present times and in future.
in one market there must be excess demand for it As different individuals in different communities
in an another market. Here ‘another market’ does have unique set of value judgements (guided by
not mean the market of an another economy— their attitutdes, religion, philosophy, and politics)
it is taken as, apple’s market, grape’s market (as it has been difficult for the economists to reach
‘seperate’ markets). This could be only correct in a a consensual idea upon which they could advise
barter eoconomy (it does not work in an economy the governments in policy making, known as the
with currency as its mode of exchnage). welfare criteria. Economists and philosophers have
The idea was part of the ‘general equilibirium been suggesting their brands of the welfare criteria
theory’ developed by the French mathematical since long–Vilfredo Pareto, Nicholas Kaldor,
economist Marie-Esprit-Leon Walras (1834- John Hicks, Scitovsky, Amartya Sen, as the few
1910), after whom it is named. famous ones.