Essays on topical issues, latest developments in UK and global economies, and answers to readers questions
What happens in a recession?Posted on August 18, 2019
A recession is a period of negative economic growth. In a recession, we see falling real GDP, falling average incomes and rising unemployment. This graph shows US economic growth 2001-2016. The period 2008-09 shows the deep recession, where real GDP fell sharply. Other things we are likely to see in a recession 1. Unemployment The …...More
Letter of 365 economists – did they really get it wrong?Posted on August 13, 2019
The March 1981 UK budget was controversial. In a period of rising unemployment, recession and high inflation. The government pursued deflationary fiscal policy trying to reduce inflation. The chancellor increased taxes by a total of £4 billion, with the aim of reducing inflation and reducing the budget deficit. Tax measures included A new 20% tax …...More
Bank RunsPosted on July 15, 2019
Bank run definition A bank run occurs when there is a sudden demand to withdraw money from a bank, that the commercial bank struggles to meet. The first signs of ‘bank panic’ will encourage other depositors to also try and withdraw their savings, causing a further ‘run on the bank.’ In a bank run, investors …...More
A selection of e-books available from economicshelp.org. Includes NEW syllabus for AS and A Level Economics.