Agriculture often appears to be one of the most difficult industries, frequently leading to some form of market failure. In the EU and US, agriculture is the most heavily subsidised industry, yet despite the cost of the subsidy it fails to address many issues relating to agriculture. Types of market failure in agriculture Volatile Prices …
There was a time when joining the Euro was a big issue, frequently debated in the UK. With Brexit referendum, it has become almost irrelevant. However, if leaving the EU proves disastrous and public opinions changes – rejoining the EU, may well involve signing up to the Euro – as new members may not get …
Will the UK’s decision to leave the EU cause recession? Factors which could cause Brexit recession Loss of confidence. Many foreign investors may be deterred from investing in the UK because of uncertainties that they may have higher costs for accessing the Single Market. This decline in investment could lead to fall in aggregate demand. …
In recent years, the UK has seen a more flexible labour market. One phenomena is the growth in self-employed contractors. This category of workers have different rights to employees. Self-employment can be attractive to workers seeking greater flexibility. But, there is also concern firms are using the categorisation of self-employment as a bogus method to …
Readers Question: But what happens to the balance of payments in a recession? (from: What happens in a recession) In a recession, the current account is likely to show an improvement (reduction in deficit). This is because: In a recession consumer spending falls, therefore spending on imports decreases. In a recession, interest rates are cut. …
The past few months have seen a rise in the US dollar. The trade-weighted index has risen from 95 in 2011 to 111 in Jan 2011. There has been a near 10% rise in the value of the dollar since July of 2014. Against the Euro, the dollar has been even stronger. One Euro was …
Some of the economic policies of J.Corbyn ‘Corybnomics’ include: Ending austerity / more relaxed rules on budget deficits. People’s Quantitative easing ‘Corbyn’s Quantitative Easing’ Higher taxes on high income earners Renationalisation of railways / energy sector National investment bank / funded by removing corporate subsidies / People’s Q.E. Ending Austerity A frequent economic criticism of …