Doom Loop

There is a chance that the British economy will get stuck in a "doom loop."

What is Doom Loop?

The doom loop is a circle of vulnerability where a country's banking system can be badly harmed by price volatility in the sovereign bonds they hold as reserves, leading to a contraction in lending given by the banks.
As a result of the domestic economy slowing down as a result of the credit contraction, the price of the sovereign's bond issues continues to decline. This is because the government is being compelled to increase borrowing in order to maintain services during a time when tax revenues are declining.
The cycle can also start in the banking industry if a decline in bank lending brought on by issues with liquidity or non-performing loans causes price volatility in government bonds by slowing the economy and undermining trust in sovereign credit.
The circle can also be triggered by outside factors like trade tensions or a halt in global economic activity brought on by a natural recession.

Source: The economic times

Join Our Telegram

Voice clone-AI

Pradhan Mantri Suryodaya Yojana

06 Feb, 24
SHARE

Recently, Prime Minister announced Pradhan Mantri Suryodaya Yojana under which 1 crore households will get rooftop solar power systems. India’s Status of Current Solar Capacity India currently stands at 4th place globally in solar power capacity. As per Ministry of New an

Foreign Contribution Regulation Act (FCRA)- NGO

06 Feb, 24
SHARE

The Foreign Contribution Regulation Act, 2010 (FCRA) registration of two prominent non-governmental organisations (NGOs) — Centre for Policy Research (CPR) and World Vision India (WVI) have been cancelled this month. What is FCRA? Key provisions of FCRA, 2010 Key aspects Description

Voice clone-AI

06 Feb, 24
SHARE

Voice clone fraud has been on the rise in India. AI voice cloning – It is the process of creating a synthetic replica of a person’s voice through machine learning and speech synthesis technology.It is called as voice deepfakesor audio deepfakes. Objective – To achieve a high level of na

Science communication- how to promote

06 Feb, 24
SHARE

Steps taken by India to promote Science Communication Publications and Information Directorate (PID) - An organisation under Council of Science and Industrial Research (CSIR) established in 1951 for publishing and disseminating scientific information in India. National science magazines- The PI

Universal Basic Income (UBI)- Analysis

05 Feb, 24
SHARE

Universal Basic Income (UBI) can strengthen welfare architecture and unlock the nation’s latent demographic potential. UBI - It is an income support mechanism typically intended to reach all or a very large portion of the population regardless of their earnings or employment status. Objective- To provide enough to co