Cantillon Effect
- It is named after the 18th century French economist Richard Cantillon who published his ideas in the 1755 book Essay on the Nature of Trade in General.
- It explains the relationship between the general money supply and the prices of goods. According to the Cantillon effect, when new money circulates into the economy, asset prices increase at varying rates.
- As new money initially enters the economy through central banks, private equity firms, and government institutions, these organizations have a greater purchasing power over the general public.
- Thus, the Cantillon effect describes the disproportionate outcome money injection has on different ....
Do You Want to Read More?
Subscribe Now
To get access to detailed content
Already a Member? Login here
Take Annual Subscription and get the following Advantage
The annual members of the Civil Services Chronicle can read the monthly content of the magazine as well as the Chronicle magazine archives.
Readers can study all the material since 2018 of the Civil Services Chronicle monthly issue in the form of Chronicle magazine archives.
News Snippets
- 1 India-Bhutan Hold Talks on Boundary and Cooperation
- 2 New Species of Congrid Eel Discovered
- 3 Delhi Becomes the 28th Legislature to Join NeVA
- 4 U.S. Withdraws from U.N. Climate Damage Fund Board
- 5 India and Vietnam Hold Fourth Policy Planning Dialogue
- 6 US Targets India’s High Tariffs
- 7 India and Armenia Sign MoU on Medical Product Regulation
- 8 Poland & Baltic States to Withdraw from Ottawa Convention
- 9 India and Mongolia Strengthen Strategic Partnership
- 10 New Freshwater Algae Species Discovered in Western Ghats
