Economics Articles

Essays on topical issues, latest developments in UK and global economies, and answers to readers questions

Bank Runs

Posted 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 …


Does a lower budget deficit lead to lower interest rates?

Posted on July 11, 2019

Readers question: Keeping a lower deficit of the National Budget would benefit Americans as interest rates would remain stable and allow new businesses to grow. Would you say this statement is correct? In theory, there is an argument that a rising deficit can cause a rise in bond yields and interest rates. Similarly, there is …


UK National Debt

Posted on July 5, 2019

Latest figures on UK National Debt. What National Debt is. Why National Debt is increasing?