Ask an Economic Question

You are welcome to ask any questions on Economics. Though you might also like to try google custom search (top right) to see if the topic has been covered before.

I am looking to explain economic principles / ideas/ recent developments in economics. I can’t promise to answer, but will try if it meets the criteria below.

  • Please don’t ask me to do your coursework / assignment e.t.c. (I can usually tell if it is a homework question!)
  • Please don’t ask any maths calculations.
  • The question and answer will be published here where everyone can see it (including your teacher!)
  • I aim to try and simplify economics; as a rough guide I would aim at an understanding similar to a good British A Level student.
  • I am looking to explain economic principles / ideas/ recent developments in economics.
  •  I will answer as a new post, if you leave email address, I’ll usually send quick email. Check home page of blog for new post. With question and answers

Add comment at bottom of post.


2,553 thoughts on “Ask an Economic Question”

  1. Greetings Mr Pettinger, you run a very interesting website.
    My question is as follows:
    Energy cost has risen steeply.
    Governments are offering money to their people, to help them bear the increased energy cost.
    Why, instead, don’t Governments impose an upper limit to the asking price of energy producers?
    Because, otherwise the producers will continue to sell energy at high prices, and the Governments’ economic help to households will make the producers rich.

    Thank you!


    • It would be good if producers paid more rather than like UK govt give all bailout to producers. Producers might claim they need to be paid higher prices because of market cost

  2. Hi Tejvan, thanks for the recent articles after the mini budget. One thing that is not getting much air time is what is the impact of the bond market volatility on the BofE’s QE programme. The QE programme seems to be up at £895bln – ie. the BofE has bought that sum in UK and some corp bonds. Over half of that was bought after Brexit and through covid when yields were lower (and therefore prices higher) than today. The BofE must be now sitting on a massive paper loss. What happens now if we move into a sustained higher interest rate environment? How does the Bank ever unwind its bond purchases? What happens to the loss it has made? Grateful for your thoughts, Tim

    • Good question, not entirely sure yet. Especially with bank announcing more bond buying today. They say they will return to selling these QE bonds when markets have ‘calmed’

  3. In Italy the demand for fresh pasta is expected to increase by 5% as income increases by 2% in the USA demand for fresh pasted is expected to increase by 1% as incomes increase by 3% . Use YED calculations to compare and comment on findings

    Please HELP how do I answer this


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