Quantitative easing definition
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Video on Effects of Falling Prices
With house prices falling rapidly, it is interesting to examine who loses and who gains.
This kind of question frequently comes up on AQA unit 3 housing market. However, it also makes an interesting macro economic question.
The Impact of Housing Wealth on economy – detailed look at impact of housing wealth on macro economy.
Video on Interest Rates
In this video, I have a look at the effect of a cut in interest rates.
I mention 3 reasons why lower interest rates will increase AD and therefore economic growth.
Note: I could have mentioned more. For example, lower interest rates, reduce hot money flows and reduce the value of the exchange rate. A lower exchange rate helps to boost exports and therefore AD.
I also introduced some evaluative points. The effect of a cut in interest rates depends on many variables.
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See also: Explaining lower interest rates
(will get a microphone to improve sound quality, soon)
Economics Help Revision
Understanding Economics
My E-book - Understanding Real World Economics.
