Essays on topical issues, latest developments in UK and global economies, and answers to readers questions
Factors that influence saving levelsPosted on April 6, 2019
Household saving is defined as income that is not consumed. Savings can be kept in cash form, saved in a bank account or saved in long-term assets, such as government bonds. Quick summary of factors that influence saving levels Interest rates – higher interest rates makes saving more attractive. Rising income enables higher saving. People …...More
ShortagesPosted on April 4, 2019
In economics a shortage occurs when demand is greater than supply, causing unfulfilled demand. A shortage can occur due to Temporary supply constraints, e.g. supply disruption due to weather or accident at a factory. Fixed prices – and unexpected surge in demand, e.g. demand for fuel in cold winter. Government price controls, such as maximum …...More
Facts about monetary policyPosted on March 31, 2019
Monetary policy involves influencing and controlling the money supply/interest rates to target inflation and economic growth. Monetary policy primarily involves changing interest rates, though it can include other tools such as quantitative easing and open market operations. In recent decades there has been a trend to making Central Banks independent and responsible for setting interest …...More
A selection of e-books available from economicshelp.org. Includes NEW syllabus for AS and A Level Economics.