The German Finance Minister Wolgang Schauble has been a strong advocate of austerity, supply side reforms and ‘sound money’ policies. (i.e. sticking rigidly to inflation targets). Generally, this has been the preferred approach of Europe to the ongoing debt crisis and recession of the past few years. Recently, he has claimed that the European economy …
Another few graphs to look at the impact of the UK budget deficit on bond yields and interest payments. Government net borrowing for 2012-12 excluding Royal Mail pension fund transfer and Asset Finance Programme (AFP – the proceeds from Q.E) Government borrowing vs debt interest payments The very large deficits have had little impact on …
The UK economy has experienced the most prolonged decline in real GDP on record. GDP is still lower than before the start of the great recession in 2008. This unprecedented recession has been prolonged – despite a sharp depreciation in the Pound, and a raft of unconventional monetary policies. However, recent statistics suggest there are …
The new Bank of England governor, Mark Carney, has implemented a type of unemployment target. As part of forward guidance, the Bank of England state that: Interest rates won’t rise from 0.5% until unemployment falls below at least 7%. Essentially, the bank are committing to expansionary (loose) monetary policy until there is a stronger economic …
Readers Question: I have recently read an article stating that “a country has only four options for getting out of a financial crisis: devalue, inflate, default, or deflate”… Would you be so kind to explain what these options comprehend?? Firstly, when people refer to a financial crisis they could refer to different economic problems. Recession …
Resources for those looking to understand economics. Essays, e-books, blog posts and latest developments on the UK and global economy. Sections A-level Revision Products | Glossary of terms |Microeconomics | Macroeconomics | Recent Articles Popular Revision e-books Macro Economics Revision Notes Economic growth Fiscal policy Monetary policy Inflation International trade / globalisation Supply-side policies Unemployment …
Macroeconomic notes Balance of payments Budget deficit Economic growth Fiscal policy Globalisation Exchange rates European Union The Euro Monetary policy Inequality Inflation International trade Supply side policies Unemployment Microeconomics notes AS Consumer and producer surplus Demand Economies of scale Elasticity Price elasticity of demand Cross elasticity of demand Income elasticity of demand Price elasticity of …
Readers Question: what are the policies that UK are using for the recovery of its economy? Since 2010, it is has seemed the government doesn’t really have a policy for economic recovery. The burden of recovery has fallen more on the Bank of England and monetary policy. – zero interest rates, quantitative easing, and allowing …