At different times there have been campaigns to ‘Buy British’ – patriotic efforts to support the economy. The campaigns seem quite popular, but usually fade out, having made little difference to major macro-economic variables. It is a form of economic nationalism and similar campaigns can be seen in many different countries. Buy British campaigns can …
The economic cycle plays an important role in determining the level of government borrowing, especially in the short run. Essentially, higher economic growth leads to lower government borrowing, but a recession will increase government borrowing. Over the past few years (2008-12) – the idea that an economic downturn increases government borrowing is probably one of …
Ireland has often held up to be a model country. Firstly, in the boom years, Ireland was a model of low taxes and deregulation. It’s rapid economic growth saw praise from both sides of the Atlantic. But, after the crash, Ireland has experienced a deep fall in GDP and the model of growth proved highly …
Readers Question: What are the main reasons for the decline of the pound, and what are the costs and benefits of a low pound? The decline of the Pound could be due to Cuts in interest rates Declining economy – causing expectation of lower interest rates ‘Technical positions’ dealers selling Pounds to get rid of …
The money supply is the amount of money in circulation measured by narrow money (MO) and broad money (M4). The money supply can rise if Central Banks print more money. Banks choose to hold a lower liquidity ratio. This means banks will be willing to lend a larger proportion of their funds. An inflow of …
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With economic sanctions and a plummeting price of oil, the Russian economy is seeing a real economic crisis. The value of the rouble is falling – causing inflation and a decline in living standards. Government tax revenues are falling as oil tax revenues decline. On top of a falling Rouble, the economy faces recession due …