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.


2,563 thoughts on “Ask an Economic Question”

  1. My question is not with reference of a state bound currency, but like lets say the population on earth just increased by a significant amount in very short time period. Like an increase of 7 billion people in one day. How would currency be stabilized if the daily necessities of food water and shelter are provided and are in abundance. This may seem a totally illogical question but I am just an author and need this reference for one of my scenarios. And I am a science student so please use simple language or explain any terms you may use

    • Thanks for the question

      The country’s currency wouldn’t be stabilised there would be a high level of inflation as domestic demand for money increases, there can be low-level inflation if the foreign investor invests in that country – macro level

      The pharmaceutical,food, bank, and many necessary commodities and manufacturing companies will start to boom if there is adequate planning and distribution of resources, in order for the economy to survive that has to be stable political conditions

  2. If the Central bank raises interest rates investment falls because it becomes more expensive to borrow.

    At the same time rising interest rates increases savings and foreign investment coming into the home country. Shouldn’t investment rise if more money flows into the country seeking an investment project?

    Thank you in advance


  3. Hi during a barter system how did people store and build wealth? Now with the monetary system anyone can say I’m worth 1million etc and that represents the wealth as it seems they can do lots with that money, but how would people build wealth during bartering? E.g swapping apples for tomatoes, how would each seller build wealth and what would represent it ? Please do reply!

  4. What are the possible effects of a decrease in direct taxation on a country’s inflation rate, unemployment rate and balance of payments?

  5. Identify 4 expenditure components of AD and their determinants
    Also explain the 3 main reasons why AD curve is downward sloping

  6. Im from Papua New Guinea, currently my country is facing inflation and the government has borrowed 58 billion loan from ADB.What is the best policies my government should make to reduce inflation and repay its loan ?

  7. Comment/Question:

    It may be splitting hairs and/or you may have given up in an effort to communicate to non economists. Im refering to supply and demand v quanity supplied and quanity demanded.
    I was taught everything effects supply and demand EXECPT price. Price effects only quantity demanded and supplied.
    You list price along with other things as effecting supply and demand. Could you please address this?
    Other than this concern, your site is appreciated and is welcome island of clarity.

  8. Hi, many of the ‘public sector debt’ statistics in this site are updated for 2020 to 2023, which is great – thanks.
    But much of the analysis of what contemporary debt means and the levels of inflation and interest rate are for 2011 – eleven years ago…
    Now (sep 2022) interest rates are rising sonetimes twice a month, and inflation is heading for 12%.
    Please can you update us with analysis of how and how much debt a state, such as the uk, can safely/sustainably carry when growth is almost totally uncertain.
    ~ Please help.


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