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THEORIES OF UNDER CONSUMPTION. Marxist theories of crisis have been elaborated for the industrialized capitalist system of the centre countries. There are crisis associated with the falling tendency of the rate of profit and there are realization crisis. The tendency of the rate of profit to fall as accumulation proceeds Read more

DERIVATIVES. Capital markets all over the world have been witnessing the dazzling development of derivatives. A derivative or derivative security is a financial instrument whose value depends on the value of an underlying security. Derivatives are son called because they derive their value from the underlying asset. For example, a Read more

HIRE-PURCHASE FINANCE COMPANIES. Hire-purchase means purchase on an installment plan. The credit involved in the installment plan is provided by financial Institutions. Hire-purchase facilities are needed mostly by small buyers of equipment, weather engaged in farming, fishing, or manufacturing, small transport operations for purchase of vehicles (new or old) and Read more

LEASING IN INDIA. Leasing has grown by leaps and bounds in the eighties but it is estimated that hardly 1% of the industrial investment in India is covered by the lease finance against 40% in USA and 30% in UK and 10% in Japan. The leasing in India covers a Read more

KINKED DEMAND CURVE. In the 1930s Sweezy developed the kinked demnd curve in an attempt to explain why prices in oligopolistic industries apparently remained rigid despite moderate changes in cost and demand conditions. Unlike Curnot’s duopolists, the oligopolistics in this model is keenly aware of its rivals and the interdependence Read more

MONOPOLY CAPITALISM. According to Paul M.Sweezy,every antagonistic socio economic formation pass through several stages in its development.At the atage of its rise,economic relating are conductive to the development of the productive process,and at the stage of its decline relations of production tend to fetter the development of productive forces.Free competition Read more

THEORIES OF VALUE. MERCANTILISTS WIEW ON VALUE:- According to mercantilists there are two types of value,viz, 1. Intrinsic value and 2. Extrinsic value. Former is the power of the commodity to satisfy human wants(in other words it depends upon ‘utility’ of a commodity).By extrinsic value,the mercantilists mean only the cost Read more