global economy

Problems facing global economy

Problems facing global economy

The global economy faces many difficulties, both short term and long term. In the short term, the global economy risks a prolonged period of sluggish growth, which will lead to problems such as high unemployment, debt default and low investment. In the longer term, the global economy faces greater threats from the environment, demographic changes and problems of resource scarcity. Short term problems facing global economy in 2016 Deflation / low inflation Japan was the first major economy to face a prolonged period of deflation – it led to a period of…

Impact of global economy on UK inflation

Impact of global economy on UK inflation

Readers Question: I am currently researching the impact of the global economy on inflation in the UK. I have come across economic policy uncertainty but am unsure what effect policy uncertainty in the EU and USA will have on the UK.UK inflation is primarily due to domestic factors. For example, if you look at the inflation of the early 1990s, it was due to an economic boom and rapid growth in aggregate demand. This level of inflation wasn’t experienced by our main international…