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UK Economic Miracles?

In the 1980s, The UK introduced many supply side policies such as privatisation, deregulation, and reform of trades unions. The government also cut the higher rate of income tax from 80% to 40%. It was hoped that these supply side policies would create a productivity boom. The government argued this reinvigoration of the British economy would enable a faster rate of economic growth, and overcome the years of under achievement. The Lawson Boom – The Miracle that never was In the late 80s, economic growth reached 5% and the Thatcher…

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Predictions Canadian Dollar 2008

Forecasts for Canadian Dollar With the Canadian dollar reaching a 130 year high, (Canadian Dollar reaches highest level since 1800 – Reuters) many are asking when the loonies upward momentum will end. The strength of the Canadian dollar is being pushed by several factors: Strong price of commodities such as oil, and precious metals. – With a booming Chinese economy, commodity prices are likely to continue being high. This will provide a long term underpinning of the Canadian dollar. If the world economy does enter recession, we can expect to see…

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Is A Strong Canadian Dollar A Good Thing?

Q. Is A Strong Canadian Dollar A Good Thing? This is an interesting question. The effects of an appreciation are good for some aspects of the Canadian economy, but, create problems for Canadian exporters. The real winners are Canadian consumers who are able to buy US goods at a much cheaper price. US border towns are reporting booming trade as Canadians make the short trip across the border to buy more goods. example: Disney World trip: Oct 2006 cost C$3,839. In Oct 2007, the same holiday would cost C$3,428 Steak dinner in…

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Predictions for US Interest Rates

October 31st, 2007, the US federal reserve cut interest rates by a quarter of a point to 4.5%. This follows on from a half point cut, a few weeks ago. The logic for falling interest rates in the US includes: Weak Housing Market – House prices falling, sales plummeting. This negative wealth effect is likely to reduce consumer spending and weaken inflationary pressures. Strength of Oil Prices – The US economy is heavily dependent on oil. Higher oil prices, effectively reduce disposable income Concerns over Credit Markets. Many financial institutions have been burnt…

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Tips on Writing a UCAS Personal Statement

Many students agonise over writing a UCAS personal statement. As a general rule, I suggest keeping it relatively simple – be honest, and give the impression you would be a suitable student for the course. Don’t worry if you haven’t got a huge list of extra curricular activities. At the same time, you don’t want to appear one-dimensional. Things to Do in Your Statement: Write with perfect grammar and spelling. Be Honest Give the impression you are interested in this subject and will be motivated to study Give the impression that you will be…

Does the UK Need More Supermarkets?

Does the UK Need More Supermarkets?

The Future? Tesco’s is the UK’s leading supermarket, with an estimated market share of 31.5% Yesterday, the competition commission suggested that the Supermarket’s dominance was not due to unfair trading practices. After a long investigation of the  British supermarket industry, the Competition Commission have concluded: Supermarkets are not competing unfairly The dominance of big supermarkets does not preclude smaller grocery shops  from competing The planning process for new supermarkets is too restrictive – What is needed is for a streamlined procedure to enable the…

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Student Guide To Mortgages

In the UK, there is a strong desire for people to own their own house. This deep seated desire is one of the factors behind the extraordinary rise in UK house prices. However, the cost of houses means that it is becoming increasingly difficult for people to get on the property ladder. To be able to buy a house, bigger and more risky mortgages are often being taken out. These are some of the pitfalls behind taking out a mortgage. Average house prices have increased faster than incomes. House Prices are…

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Ask Economics Question

You are welcome to ask questions on Economics. I will post the answer on this blog, for everyone to benefit from. I shall try to answer the economics question and / or point to other resources but please bear in mind. The replies will be guidance and not for duplication. Your essays should always be your own work. My speciality is economics for British A Level standard. My university economics is rusty in parts, because generally I don’t use it in teaching A level economics. I can’t guarantee to always give answers it also…