Readers Question: Will Cutting Public spending bring economic growth?Do Countries with lower government spending as a % of GDP have higher economic growth rates? After recent data on -0.7% growth in Q2 2012, several experts offered suggestions for restoring economic growth to the UK. In the Guadian, Sheila Lawlor suggested (link): The UK’s output figures, …
Keynes was one of the great economists of the twentieth century. Even his critics would have to admit he had a certain turn of phrase and wit. These are some of his more memorable quotes The long run is a misleading guide to current affairs. In the long run we are all dead. Economists set …
Readers Question: With talk of a Greek exit from the Euro, the situation is almost always compared to Argentina in the 1980s and 90s. Can you explain what happened there and how it was resolved. In the 1980s, Argentina built up substantial debt and also suffered from periods of very high inflation. To stabilise inflation, …
Readers Question:Do you really think the UK will keep the AAA credit rating for say the next 2 years? The UK is one of the few countries to have a AAA credit rating. (list of countries with highest credit rating) I’ve always felt that the UK should be able to maintain its AAA credit rating …
Readers Question: Should Greece pull out of the euro ? They are in the fifth year of recession despite EU bailouts – it seems like pouring money down a black hole. Yes. I believe they should leave the Euro. I put some arguments for and against here – Should Greece leave the Euro. Leaving the …
One of the great challenges facing Europe is the persistence and increase in levels of unemployment. The highest rates of youth unemployment are in Spain (51%) and Greece (51%). Other countries include Italy 35%, France 21%, UK 21%, Portugal 36% Youth Unemployment in the UK This shows how youth unemployment in UK has increased since …
We may be in a longer recession than the 1930s Great Depression (see: link) but it hasn’t prevented the richest people in Britain increase their net wealth. The richest 1000 men and women have a combined wealth of £414bn, up 4.7% on the previous year. Richest People in the World 2012 1. The Walton …
Recently, the IMF have been working hard to establish a bigger fighting fund to help out insolvent Eurozone economies. (Although they say, it is not just for the Eurozone, but for the whole world economy.) Extra contributions from IMF members have raised an extra £300bn – taking the total of IMF funds to £1,000bn. The aim …