Author: Tejvan Pettinger

What effect do interest rates have on wages

What effect do interest rates have on wages

Readers Question: What effect do interest rates (either a rise, fall or steadying) have on both monetary and real wages? I think I’ve got my head round it, but I’m looking for a nicely explain summary (understanding that there are probably a million of contributing factors that can lead to a million outcomes!) You are right, there is no direct link between interest rates and wages (either nominal or real), and there are thousands of possible combinations, which make it difficult to create simplistic answers. But, interest rates can have…

ocr-revision-guide

New OCR economics revision guide

I have spent past few weeks working on the new OCR A Level in economics revision guide. (H460) First teaching from Sept 2015. First A level exam Summer 2017. On the positive side, the syllabus is very detailed. OCR are very clear on what you need to cover. After doing AQA and Edexcel revision guides, I thought (perhaps hoped!) that OCR would be quite quick. It wasn’t. The OCR syllabus did seem to go on for a long time! Part of this is…

TIPP – UK / US trade deal

TIPP – UK / US trade deal

TIPP (Transatlantic Trade and Investment Partnership) is a potential trade deal between the EU and US. It is currently being negotiated by the European Commission and the US. The aim of the agreement is Encouraging trade and investment between the EU and the US. Extend principles of European Single Market to include the US, enabling lower prices for consumers, greater trade and prosperity. However, critics of the agreement fear that the proposal will lead to lower environmental standards, job losses, privatisation of public services, and overall…

uk-national-debt

What has borrowing ever done for me?

A reader on twitter asked – How has government borrowing helped me recently? I’m tempted to paraphrase as – What has borrowing ever done for me? – just so that I can make a reference to Monty Python and the Life of Brian? – And what have the Romans ever done for us? – apart from education, sewers, wine, roads, peace, law and order  … (youtube) I’ve answered this question several times before: Why does the government borrow? Should government’s borrow But, I frequently get asked…

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Is it so bad to leave the Euro?

Leaving the Euro is supposed to be irreversible. If a country did threaten to leave the Euro – it was argued it would lead to bank runs, loss of confidence, high unemployment and a serious recession. But, what if you already have all of these components? The Greek economy is in dire state. Furthermore, their main creditors are behaving with tremendous short-sightedness, ignorance or either vindictiveness. This is trying to put it politely. Given how disastrously unsuitable the Greek economy has been in the Eurozone straight-jacket, now is the opportunity to take back…

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A short note on Greece

Just a short note on Greece because at the moment I’m concentrating on writing revision guides. For several years I have felt that Greece would be better off to leave the Eurozone. This is partly due to economics, but also partly an intuition – that there is no greater recipe for political disaster than having disastrous economic policies dictated by a foreign power (EU, IMF, Germany) The frustration in Greece at Europe is well-merited. Leaving the Eurozone will perhaps make Greece masters of their own destiny. They will not feel they are…

New AS Economics – Edexcel revision guide

New AS Economics – Edexcel revision guide

I have just finished the new version of AS Edexcl economics revision guide. It is updated for the new syllabus, which will be used for first exam in 2016. The Edexcel AS revision guide is 108 pages, 20,800 words. More details here: AS Edexcel Revision Guide £5.00 Network license for schools For schools, I am making available as a network license allowing unlimited use, with word doc. Coming soon I will be finishing A2 revision guide. I will soon be bringing out revision guides for…

Effects of a budget surplus

Effects of a budget surplus

The chancellor George Osborne has recently announced a plan to enshrine budget surpluses in law. It is worth noting, that budget surpluses are quite rare in the past 120 years. The argument of the chancellor is that with national debt ‘unsustainably high’ – periods of economic growth should be taken as an opportunity to pay down debt and reduce the burden for future generations. What is the impact of a budget surplus? 1. Higher taxes / lower spending. To ensure a budget surplus,…