Should I worry about savings in the bank?

deflation-inflation-20s-30s

Readers Question: I only have $10,000 in my bank. With this virus situation, what is going to happen to the value of my money? Serious question. Do I try to exchange my money to another foreign country currency? Help, please. I am 68 years old, no pension and no job. George Firstly, I would not …

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Would payroll tax cuts help with corona recession?

paradox-of-thrift

President Trump has proposed a payroll tax to deal with the economic shock of the Corona recession. In normal circumstances, a cut in income tax should help to boost economic growth. Workers will see an increase in disposable income and spend more. This creates additional demand in the economy, so firms are more likely to …

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Policies to deal with economic costs of coronavirus

national-debt-1910-2019

The economic implications of coronavirus and the widespread closure of economies present a unique set of challenges for policymakers. The usual tools for dealing with a recession are inadequate, the over-riding need is to provide a basic safety net for the millions of people who will see a fall or complete drop in income. It …

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Economics tuition – online

If you would like economics tuition by Tejvan Pettinger of economicshelp.org, I am now offering lessons via Skype (or Oxford if you live nearby). You are welcome to contact me, or 07952 419874 to check availability and discuss requirements. I teach economics A-level (and similar standards) Note: mostly, I do not teach university economics. The …

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Price gouging – definition and examples

price-gouging

Price gouging is a situation where business take advantage of an external crisis to charge excessive prices for basic necessities – selling the goods significantly above their usual price. Many countries have laws against the practise of price gouging – to protect consumers against unfairly high prices during a national emergency. Example of price gouging …

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Who will be most affected by 2020 shutdown and recession?

oil-prices

I started www.economicshelp.org in Nov 2006. Within a year, I was writing about the US housing crash, the credit crunch and the recession of 2008/09. It was a turbulent period and there was a surge of interest in economics, which helped the economics blog to take off (which left me with mixed feelings!) But, the …

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Impact of economic recession

cyclical-unemployment

A recession (fall in national income) will typically be characterised by high unemployment, falling average incomes, increased inequality and higher government borrowing. The impact of a recession depends on how long it lasts and the depth of the fall in output. The main costs of a recession will be: Unemployment Fall in income – shorter …

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Policies to deal with economic crisis

us-tight-fiscal-policy

A look at various economic policies to deal with an economic crisis, such as a fall in GDP. Economic crisis could involve Lack of economic growth/recession High Unemployment Long-term structural deficits Lack of confidence in finance and consumer sector. Rapid devaluation Solutions to economic crisis Fiscal policy – When the government influences demand through changing …

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