Economics Articles

Essays on topical issues, latest developments in UK and global economies, and answers to readers questions

Applying economics in everyday life

Posted on July 20, 2017

At the start of the academic year, I always feel a little pressure to justify the study of economics. Students come up asking things like, should they do economics or history? It’s hard to know what to say, but to get people excited about economics, it’s good to try and think how economics can be …


UK Inflation Rate and Graphs

Posted on July 18, 2017

Current UK Inflation Rate CPI inflation rate:  2.6% (headline rate) CPI – D7G7 at ONS (page updated 18 July 2017) Source: Raw data General inflation tables | CPI annual % change D7G7 at ONS Other measures of inflation (CPIH) CPI including owner occupiers’ housing costs – 2.6% (CPIH – L550) Factory gate prices (Output prices) …


Fairness and Reciprocity

Posted on July 14, 2017

In behavioural economics, studies have suggested individuals value the concept of reciprocity. If people are kind to us, we have a greater tendency to respond in kind – behaving more altruistically than self-interest theory suggests. Reciprocity can also work in a negative sense, with agents willing to ‘punish’ those who abuse the ‘rules of the …