The Irish economy is in crisis because: Irish Banks lost substantial sums in the credit bubble and bust, this meant the Irish government had to bail them out. After several years of high growth, the Irish economy went into recession. Recent austerity measures (spending cuts) have caused a double dip recession and the current turmoil …
Lovely organic vegetables, but will anybody be buying them in a period of falling real incomes? It seems we like our organic food, but only when incomes are rising. During the period of strong economic growth in the mid naughties, sales of organic food grew by up to 30% a year. However, last year demand …
A contestable market is defined as a market where there is freedom of entry and exit. This market must have low sunk costs. Sunk costs are those costs you can’t recover when leaving the market. In practise few markets are perfectly contestable, however there are degrees of contestability. With lower barriers to entry and exit, …
photo Neil Cummings flickr Spending cuts will be an emotive issue, especially for people facing job losses. But, is the TUC correct to say there is an alternative to the government’s spending cuts? (TUC Link) UK annual borrowing (PSNB) is forecast to be £149 2010/11 (12% of GDP). This is one of highest peace time …
(From my Oxford Cycling photos) The Office of National Statistics has an interactive site for people to contribute to concepts of what should count as ‘national well-being’. The ONS is currently developing a new index for well being and is inviting people to take part. Measuring National Well Being What is National Well-being? It is …
Readers Question: How can a larger government fiscal deficit case a larger international trade deficit Firstly, it is important not to confuse the two deficits. Government fiscal deficit occurs when government spending is greater than tax revenues. The deficit is the annual government borrowing requirement, measured by Public Sector Net Borrowing. International Trade deficit implies …
Q. Why does Japanese Yen appreciate after Earthquake and Tsunami? Japan has suffered a tragic natural disaster. Aside from the very real human tragedies, it will have an adverse economic impact. Yet, since the crisis, the Japanese Yen has appreciated in value. Why has the Yen appreciated when perhaps you may have expected the opposite? …
Readers Question: In 2009, both inflation and growth went down, but in 1991, the inflation went up, even though the growth went down. What could be the reason for the difference in behavior? (UK Growth Rates) In 1990 inflation was high. This high inflation was a result of the previous economic boom. In the late …