Daily Current Affairs – 13th April 2020

What Is Helicopter Money And Quantitative Easing

Economic activity has come to a standstill due to the ongoing lockdown to prevent infection with the corona virus. Due to this the country is suffering a huge loss, for which financial package is being demanded from every sector. Meanwhile, ‘Helicopter Money’ is being discussed all over the world these days. In such a situation, you know what is helicopter money.

What is chopper money?

When the economy of a country goes bad, the central bank of that country (Reserve Bank of India-RBI in India) printing the notes on a large scale gives it to the government. The government does not have to return this amount to the Central Bank. With the help of this amount, the money supply increases, which increases the demand and inflation. American Economist Milton Friedman called the process chopper money.

What is quantitative easing?

Telangana Chief Minister K Chandrasekhar Rao has recently spoken about quantitative easing. He suggested the central government to keep the target of fiscal deficit in the central economy at 5 percent as against 3 percent of GDP.

Apart from this, Chandrasekhar Rao has asked to release 5 percent of GDP through Quantitative Easing. India’s GDP is around 3 trillion dollars. Its 5 percent is 15 thousand crore dollars (about 11 lakh crore rupees).

Like chopper money, the central bank also prints notes in quantitative easing, but it gives money to the government by purchasing government bonds with this amount. The government later has to return this amount to the central bank.

Petroleum Production Cuts

In the recent Virtual Meeting of G-20 countries held in Saudi Arabia, the major petroleum producing countries have decided to cut their daily oil production by mutual consent to control the falling prices of mineral oil.

In a virtual meeting of G-20 countries held on April 10, 2020, the world’s major oil producing countries Saudi Arabia, Russia, USA etc. have agreed to cut the global oil supply to stabilize the falling mineral oil prices.

In this meeting, the current global supply of crude oil will be cut by 10% under an agreement between the countries of the Organization of Petroleum Exporting Countries (OPEC) as well as other informal members of the group (OPEC +).

In addition, the OPEC organization has also demanded other countries of the world to cut their oil production by 5%.

According to the US Secretary of Energy, by the end of 2020, US oil production can be cut by 2-3 million barrels per day.

Under this agreement, Saudi Arabia and Russia will cut their petroleum production by 2.5 million barrels per day between May and June and Iraq will cut its petroleum production by 1 million barrels per day.

Saudi Arabia and Russia agreed that the basis for this reduction in oil production would be based on 11 million barrels per day of October 2018, although Saudi Arabia’s oil production rose to 12.3 million barrels per day in April 2020.

Reasons For The Fall In Oil Prices:

At present, there has been a sharp decline in the oil market due to the lack of consensus between major producing countries on the reduction in the demand for crude oil globally.

The COVID-19 epidemic has exacerbated the problems in the petroleum market, restricting production and daily activities in most countries of the world to prevent the transition to COVID-19, causing an additional drop in crude oil demand. .

The public air traffic sector has been a large market for petroleum producers, but the global fuel postponement due to COVID-19 has led to a significant decline in demand for aviation fuel.

Impact on India:

India is one of the largest oil importing countries in the world, so the fall in oil prices will save foreign exchange.

Currently, the fall in oil prices amidst the challenge of COVID-19 will help reduce the government’s fiscal deficit.

However, long-term decline in oil prices will damage the economies of countries based on oil exports, which could have an impact on Indian exports to these countries.

The decline in the economy of oil producing countries may face the dual challenge of increasing unemployment along with the reduction in remittance received through ‘Non Resident Indian’ NRIs living in these countries. is.

$ 2.2 Billion In Aid By ABD

Recently, the President of the Asian Development Bank (ADB) has assured India $ 2.2 billion in funding for response to the COVID-19 epidemic.

Main Point:

 The ADB has announced a preliminary package of about $ 6.5 billion to meet the emergency needs of developing member countries, including India.

The steps taken by the Government of India towards managing the COVID-19 epidemic were also praised by the ADB Chairman.

Need Financial Help:

India’s trade and manufacturing supply chain is disrupted due to the weakening global economic growth rate due to the epidemic.

The epidemic is affecting the livelihood of micro, small and medium-sized industries (micro, small, and medium- MSME) as well as the formal and informal workers of the country. In such a situation, these sectors are in great need of financial help.

ADB Praises India:

The following measures initiated by the Government of India towards the management of COVID-19 epidemic were praised by the ADB:

‘National Health Emergency Program’.

Tax exemption and relief measures in the field of business.

1.7 lakh crore rupees economic relief package.

Immediate assistance provided to the poor, women and workers affected by the three-week lockdown.

Computer Based Nanomaterial

Recently researchers from the Institute of Nano Science and Technology- INST have created computer-based designs of nano-materials with superhigh piezoelectricity that are designed to be the next generation of ultrathin. Very small size power devices consisting of nano-transistors can prove to be the basic elements.

Main Point:

The use of piezoelectricity in two-dimensional (2D) materials was first theoretically hypothesized in the year 2012. But later in the year 2014, it was actually used in monolayer.

Since then, there has been increased research promoting the use of piezoelectricity in two-dimensional materials such as graphene. Although most of the two-dimensional materials to date have predominantly in-plane piezoelectricity, out-of-plane piezoelectricity is desired and also in demand for equipment-based applications.

At the same time, Indian researchers recently published their research report at the Nanoscale and American Chemical Society in a two-dimensional nanostructure through superheigh-out-of-plane piezoelectricity (Superhigh Out) -of-Plane Piezoelectricity).

Such use of piezoelectricity is based on the two-dimensional van der Waals Heterostructure- vdWH technique in which two-dimensional monolayers are incorporated.

This is a new technique for the design of nano material grips where different monolayers with mutually complementary properties are joined together to expand their internal boundaries.

Various factors affect the electronic properties when two monolayers are placed on top of each other to form vdWH. Dipoles originating at the interfaces exit into the interlayer region due to the high charge density difference between the two established monolayers.

As a result, the use of out-of-plane piezoelectricity can be seen.

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