Readers Question: Economics is a social science, it contains graphs, diagrams and statistics to make strong evaluations and at university level it also often seems to have a strong Maths content which allows for even stronger analysis, calculation of events and evidence of theories. So how is it possible that often economic events such as …
A two speed Europe refers to how, within the EU, economies are growing at different rates and are at different stages in the business cycle. For example, countries in the core of the Eurozone (Germany, Netherlands, France) have seen relatively good recovery since the recession. In these countries, unit labour costs have remained competitive, enabling …
The Genuine Progress Indicator (GPI) is an attempt to measure the real increase in economic welfare. The GPI measures the improvement in economic welfare – costs associated with growth. It is measured using the formula GPI = A + B – C – D + I A is income weighted private consumption B is value …
Readers Question: What credit can the adoption of central bank independence take for the relative stability of the UK business cycle since 1997? The MPC, Bank of England, are responsible for setting interest rates and determining UK monetary policy. They seek to keep inflation close to the government’s target of CPI 2% +/-1 % Between …
Labour's Big Budget GambleWatch this video on YouTube It was one of the biggest budgets in decades – Higher tax, higher spending, and more borrowing. Rachel’s Reeves hopes it will boost economic growth, avoid austerity and restore public services. But it is a gamble because if it fails to increase growth the UK will need …
Last May, Rishi Sunak could boast that the UK was the fastest growing economy in the G7. And, after a fashion, he was correct. Not only that but UK inflation has fallen close to its target of 2% and Sterling has reached its highest level for eight years. Were the Tories about to do the …
Denmark is an economic powerhouse with a GDP per capita higher than Germany, Netherlands and the UK. It is one of the richest countries in the world, but remarkably unlike Norway has no particular oil riches. Also, it has achieved its wealth despite having one of the highest tax rates in the world. What is …
Since the financial crisis of 2009, the UK economy has experienced a real decline in economic fortunes. Last month, we entered a recession, but real GDP per capita has been stagnating for a decade. This poor economic performance is creating its own spiral of problems- rising debt, low investment and creaking public services. Recent budgets …