A debt spiral refers to a situation where a country (or firm or individual) sees ever-increasing levels of debt. This increasing levels of debt and debt interest become unsustainable, eventually leading to debt default. Types of Debt Spirals Public sector debt. This is debt that the government owe to the private sector (e.g. UK public …
Welfare spending in the UK is a controversial topic. There is significant political and public concern at the growth of welfare spending in the past few decades. In particular, there is a fear that the growth of the welfare state is encouraging a ‘dependency culture’. But, how much has welfare spending actually increased by? Are …
A quick look at a comparison between the economies of Portugal and Spain, with the economies of the UK and US. Four countries with very different paths of unemployment.
Policies to halt the slide of the dollar 1. Increase US interest rates · Higher interest rates will attract more hot money flows into the US and therefore cause an appreciation. · Also higher interest rates will cause an increase in savings and a fall in spending this will help reduce imports into the US …
Catalytic converters help reduce pollution and therefore have positive externalities. This means that if consumers use them there will be benefits to a third party, because there will be less pollution and health problems. In a free market there may be under provision of catalytic converters, for various reasons. Firstly, because there are positive externalities …
There was reduction in the surplus on the current account of the French balance of Payments between 1998 and 2000. Essay Question: Using the data, assess whether this reflects a deterioration in the performance of the French economy. AQA (15) The current account measures the balance of trade in goods and service between France and …
The UK government has a national debt of over 55% of GDP. It finances its debt by borrowing from the private sector. Its debt is managed by the Debt Management Office DMO 1. By issuing government bonds (gilt edged stocks) demand comes mainly from non- bank financial sector e.g. insurance co. i) e.g. Treasury 10% …
European Union For AQA Unit 4 Origins of the EU Economic Integration Single Market What it involves Efficiency of the Single Market Common Agricultural Policy Reform of the CAP Expansion of the EU Monetary Union What it involves How it affects Monetary Policy Impact of European wide inflation targeting and interest policy Arguments for Against …