How To Increase the Supply of Money

Readers Question: how will central bank may increase the supply of money in economy? The money supply is the total amount of money available in the economy at a particular point in time. A narrow definition of money involves notes and coins. A broader definition includes cash plus bank and building society deposits. Policies to …

Read more

Revising economic growth statistics

Readers Question: Does growth forecast always corresponds to the mesured growth? If a bias exist, is it always on the same side? Recently, growth statistics published on February 26th showed that the GDP figures for the fourth quarter of 2009 were a higher than first recorded. GDP grew by 0.3%, rather than the initial estimate …

Read more

Question: Does the financial crisis have any positive effects for the future?

Readers Question: Does it (financial crisis) have any possible positive effects for the future? It is an opportunity to repair a broken financial system and put in safeguards to prevent future boom and busts. For example, we could have policies which banks automatically hold more deposits during a boom to provide  counter cyclical instruments. Better …

Read more

Changing Your Bank

Some people or businesses are reluctant to switch banks because they think the process could be time-consuming and risk loosing information.  It is easy to stay with the bank you first chose through inertia when but switching your account could help you get a better deal. The Banking Conduct of Business Sourcebook (BCOBS) which replaced …

Read more

Why a death tax would make a good tax

As the old saying goes there are two certainties in life – death and taxation. So why not combine the two and raise revenue from inherited wealth? I have written on this topic before Why are we reluctant to tax Wealth? But, I would like to make another case for why a ‘death’ tax meets …

Read more

The Mystery of British House Prices (2010)

To many people’s surprise, UK house prices have risen quite strongly in the past 12 months. If we look at the experience of Japan, United States, Ireland or Spain, it seems the experience of Britain is unusual. Countries like Japan and the US had a boom and bust in  house prices, similar to the UK. …

Read more

Item added to cart.
0 items - £0.00