Things to Ponder

What exactly moves the markets?? Is it the Trade? or the Interest rates? or flow of money? or is it the other "macroeconomic/macropolitical/macromenspeakmore" factors? Can a stagnant Interest rate really move markets (also read economy)? or should it be flexible to changing world scenarios? Can you exist in isolation? or should you respond to changes elsewhere especially those economies on whom your economy is tilted favourably for signals of change? How do you fight an inflationary scenario? What are the appropriate levels of inflation? Is an inflationary economy essentially good? What happens if your Interest rates are higher than the other economies? What if the Interest rates are higher/lower than the rate of Inflation? What does a Trade Surplus/Deficit have to do with the economy? What are the impacts of recession in an economy? Is growth of economy always good or is recession also an integral part of growth?

I have dozens of such questions. And they say you are no good if you dont have queries. And they also do add that you are no better if you cant find answers to them. So begins my quest for understanding them better. For a start, I will try and understand them in the Indian perspective, with maybe a reference or two to other countries and International scenarios. Wish me luck. And help me understand if you can.