Op-Ed Focus: Despite a slowdown, early signs that global investment growth may be accelerating

Article: Despite a slowdown, early signs that global investment growth may be accelerating

Link: http://blogs.economictimes.indiatimes.com/et-commentary/despite-a-slowdown-early-signs-that-global-investment-growth-may-be-accelerating/

Now try and answer the following questions:

1. What is Harrod Domar Model of investment? What is the use of this investment model for policymakers?
2. What is the reason for the current slowdown in growth & investments? How can the growth of the economy be revived?
3. What is Incremental Capital Output Ratio (ICOR)? What are the reasons behind a high ICOR in India? How can this be brought down?

Points to Ponder:

1. What are the different types of investment models? Read about them.
2. How far is the slowdown in the economy responsible for the stress in the banking sector? How can the number of NPAs be reduced in the banking sector?