UK bond yields are the rate of interest received by those holding Government bonds. Governments sell bonds (also called gilts) via the Debt Management Office to fund their budget deficits. Bonds are a way for the government to borrow – a bit like the government taking out a loan. Government bonds are frequently traded on …
Summary of Phillips Curve The Phillips curve suggests there is an inverse relationship between inflation and unemployment. This suggests policymakers have a choice between prioritising inflation or unemployment. During the 1950s and 1960s, Phillips curve analysis suggested there was a trade-off, and policymakers could use demand management (fiscal and monetary policy) to try and influence …
Many young people will understandably be hoping and praying that there is a substantial fall in UK house prices to make them affordable and escape the broken rental sector. However, if there is a serious house price fall, there is a real danger this would push the UK economy deeper into recession. In the last …
In the post-war period, there was a dramatic decline in income inequality in the UK. However, from the early 1980s, this went into reverse with a sharp rise during the Thatcher years. Unequal Britain: UK's Inequality Crisis ExplainedWatch this video on YouTube The UK has now one of the highest levels of inequality in the …
The UK government faces a perilous situation. In the short-term, there is a combined threat of an energy crisis, high inflation, risk of an imminent recession and a falling value of Sterling. On top of that, there are long-term problems such as climate change, a slowdown in growth and productivity, and rising debt to GDP. …
For many people, especially those under 40, the UK housing market appears broken, with excessive prices making it difficult to buy and very expensive to rent. Housing costs are one the biggest factors in a long-term cost of living crisis. The UK isn’t alone, with many advanced economies also facing a broken housing market and …
Politicians often promise tax cuts can lead to higher productivity, higher economic growth, and even pay for themselves through a boost to long-term incomes. These promises may chime with the electorate who tend to prefer promises of tax cuts. But, do tax cuts really increase economic growth? There are two impacts of lower tax. Increasing …
The economics of happiness seeks to relate economic decisions to a wider measure of welfare and happiness rather than traditional measures of just income and wealth. Happiness economics attempts to evaluate a wider range of factors affecting well-being, quality of life and self-reported levels happiness. There are now several measures of happiness, such as Gross …