In 2015, the German current account surplus surged to 8.5% of GDP. A record level and a surplus which has implications for the Eurozone and global economy. Source: Bundesbank The surplus is primarily due to the surplus on trade in goods. Though in recent years, there has also been a surplus in primary income. This …
In 2007, EU economies, on the surface, seemed to be doing relatively well – with positive economic growth and low inflation. Public debt was often high, but (apart from Greece) it appeared to be manageable assuming a positive trend in economic growth. However, the global credit crunch (see: Credit crunch explained) changed many things. Impact …
There have been numerous economic predictions springing from a possible Brexit including recession, unemployment, falling Pound, falling stock markets, collapsing house prices, inflation and the end of civilisation as we know it (I’ll leave predictions of world wars e.t.c. for someone else to grapple with). But, what is the economic theory behind these economic predictions? …
Readers Question: What is meant by economic uncertainty? Economic uncertainty implies the future outlook for the economy is unpredictable. When people talk of economic uncertainty, they usually imply there is a high likelihood of negative economic events. Economic uncertainty could involve. Predictions of a higher and more volatile inflation rate. (inflation uncertainty) Concerns over economic …
Recently, Liverpool supporters protested about plans to increase the price of many ticket (the most expensive seat in the Main Stand will now be £77). Many supporters complain that football tickets have risen well above the rate of inflation in recent years, making football less accessible to supporters on lower-incomes. But, what are the economic …
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 …
Accommodative monetary policy means a policy of allowing the money supply to rise in line with national income and the demand for money. Accommodative monetary policy will also usually involve lower interest rates. Accommodative monetary policy may also be known as ‘easy monetary policy’ / loose monetary policy / expansionary monetary policy. The aim of …
Saltwater economists are associated with economists from the Universities on the east and west coast of the US. In particular universities such as Berkeley, Harvard, MIT, Princeton, Pennsylvania Columbia and Yale. Economic thought from these universities tends to be more suspicious of free markets and advocate a greater role for government regulation and discretionary fiscal …