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 …
An economic stimulus package is an attempt by the government to boost economic growth and lead the economy out of a recession or economic slowdown. The two main ways for stimulating the economy are expansionary monetary policy and expansionary fiscal policy. Though it tends to refer to fiscal policy. Fiscal policy This involves a change …
The UK recovery paints an unusual situation. We have both positive economic growth and falling real wages. How can we have economic growth with falling real wages? Real wages are not the only source of economic growth. We can see growth from other components of AD – I (Investment), G (Government spending) plus net exports …