A list of the major recessions in UK and US. List of Recessions in UK Comparing different recessions 1919-21 Recession GDP fell 25% during the three years following the end of the First World War. Unemployment rose to 20% UK experienced deflation of 10% in 1921, and 14% in 1922 Causes of fall in GDP …
Readers Questions Could you please explain the comparison between the Keynesianism & monetarism? Keynesianism emphasises the role that fiscal policy can play in stabilising the economy. In particular Keynesian theory suggests that higher government spending in a recession can help enable a quicker economic recovery. Keynesians say it is a mistake to wait for markets …
After keeping interest rates at close to zero for several years, the US Federal Reserve has moved to finally increase interest rates. This increase in interest rates is more significant than usual because it marks an end to the unique circumstance of ultra-low interest rates. The Federal Reserve has also indicated they expect to raise …
These are a collection of essays written for my economic blogs. Exchange Rate Essays Effects of a falling Dollar Why Dollar keeps falling Discuss Policies to Stop the Dollar Falling Does Devaluation Cause Inflation? Benefits and Costs of Falling Dollar Reasons for Falling Dollar The Dollar as the World’s Reserve Currency Economic Growth Essays Evaluate …
UK inflation since 1989. Definition – Inflation – Inflation is a sustained rise in the cost of living and average price level. Causes Inflation – Inflation is caused by excess demand in the economy, a rise in costs of production, rapid growth in the money supply. Costs of Inflation – Inflation causes …
The economic trade cycle shows how economic growth can fluctuate within different phases, for example: Boom (which is a period of high economic growth possibly causing inflation) Peak (top of trade cycle, where growth rates may start to fall) Economic downturn/Recession ( where the growth rate falls and may become negative – leading to a fall in …
Demand side policies include expansionary fiscal and monetary policies. For example, the govt could increase Govt spending and lower taxes. G is a component of AD, therefore, this will cause AD to increase, there may also be a multiplier effect causing AD to increase even more than the initial effect Lower tax rates will increase …
Aggregate demand (AD) is the total demand for goods and services produced within the economy over a period of time. Aggregate demand (AD) is composed of various components. AD = C+I+G+ (X-M) C = Consumer expenditure on goods and services. I = Gross capital investment – i.e. investment spending on capital goods e.g. factories and …