Readers Questions III

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You are welcome to ask questions on Economics. However, due to volume of questions, I can no longer promise to answer all questions.

I will post the answer on this blog, for everyone to benefit from.

I shall try to answer the economics question and / or point to other resources but please bear in mind.

  1. The replies will be guidance and not for duplication. Your essays should be your own work.
  2. My speciality is economics for British A Level standard. My university economics is rusty in parts, because generally I don’t use it in teaching A level economics.
  3. I can’t guarantee to always give full answers it also depends on my time schedule.
  4. I will answer as a new post. Check home page of blog for new post. With question and answers
  5. Generally, I don’t answer questions, which involve mathematical calculations, they tend to be doing someone’s homework. however, I may give examples, of calculations, if I think it helps explain economics principles.

I studied PPE at Lady Margaret Hall college, Oxford University, and currently work as an Economics A Level teacher. I have also examined several different economic units for Edexcel AS and A2.

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If I answer your question, and you find it helpful, a donation is appreciated here for details on donating $2.

234 thoughts on “Readers Questions III”

  1. two questions.

    1. The government puts a lot of money into banks who over-lent funds. So why are the banks still lending out money for mortgages?

    2. The problem has been the number of defaulters. But for Building Societies there is less than 0.001% of 1% defaulters (Saturday’s Guardian) – where ARE all these houses being repossessed?

  2. Hi! Can you explain for me why floating exchange rates reduce the risks of currency speculation? What are those risks? Thank you very much! 🙂

  3. hi,
    i have a question here about the’ electronic banking has caused the demand for cash — as a percentage of GDP– to decline’ . i have did abit research on this and i found there is no abviouse impact on decline of cash but not too sure if it right. so would you please tell me more about the impact of having eletronic banking and demand for cash. thank you

  4. One way to finance government spending is to print money, but printing more money leads to inflation. How economic theory justify this? What are the disadvantages of printing more money?

  5. Hi Mr. Pettinger,

    I’m just curious about how and why the dollar has strengthened (at least against the Euro and Pound) and why the US would benefit from a stronger USD.

    I know that a weak USD means a stronger exporting sector (which is what the US economy had been thriving upon over the last year or so). Can you please link up some articles you wrote previously on this matter, if you have time.

    Thanks so much!

  7. Hi,
    the questions: economic factors that cause an economic Foreign Direct Investment to drop?

    2) the “recent incidents” of the merits and demerits of government intervention in mircoeconomic market activities.

    thanks a lot and i m much appreciate!

  8. In recession it is good to cut interest rate, but to how far should interest rate be cut? What are the disadvantages of cutting interest rate?

  10. define what is meant by equivalent and compensating variations. Under what conditions can the area under the demand curve above the price line be used as an accurate monetary measure of welfare.

  11. How does the recent credit crunch and the failure of financial institutions have affected the decisions for people to invest their savings in the private sector? Could this also be explained with the help of economic thoery of saving and consumption?

  12. Why is the Canadian $ dropping against the American greenback when the Canadian economy and banking system is in much much better shape than the American Economy and Banking system?

  13. I live in Egypt. I have savings in sterling pounds. In view of the current falling value of the pound should I change it to local currency. Is there any chance that the pound will increase up again even after a year or so.

  14. Hi,

    I have been reading your posts and essays which are interesting as well as helpful.

    The topic I am interested is in the causes of economic growth based mainly in the UK over the last 10 years. I guess technology has not played a big part in UK as much as other countries such as Japan, India & China. In my opinion, UK is consumer led and investment led in businesses and properties abroad. What’s your view on this? Also what do you think have been the main causes of economic growth over the last 10 years?

    Thank you.

  15. Demand for oil might be relatively elastic over the longer term, and yet it could be observed that over time people consume more oil (or only very slightly less) despite rising oil prices. How can this apparent contradiction be explained?

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