The world economy is already entering a very deep recession, with GDP falling by an estimated 20-25%. Unemployment will rise very fast as large parts of the economy close down. An optimistic assessment is that the economic shock will be short-term, policymakers are responding with as much monetary and fiscal help as they can, and …
The next 12 months are going to see unprecedented demands on the government budget. It is likely GDP will fall 10-20% – if not more. On its own, this would lead to a surge in government borrowing Fall in income tax receipts as people earn less Fall in VAT and excise duties as people spend …
Smart meters have the ability to give both consumers and firms live readings of how much gas and electricity you are consuming. It saves having manual meter readings and will increase the efficiency of energy supplies. It gives consumers a running total of how much they have spent on gas and electricity and helps to …
Modern monetary theory is a heterodox economic theory which states governments should not worry about government borrowing but be willing to aim for full employment. Full employment should be achieved through expansionary fiscal policy and financed by creating money. MMT argues the only limit of higher government borrowing is the effect on inflation. Thus if …
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 …
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 …
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 …
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 …