onomi     on epts and erminolo ies         22.53
     the IMF, the litigating creditors were concentrated
                                                               wAsting Asset
     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.
                                                               weightless economy
        vostro Account
                                                            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.