Monetary policy involves using interest rates and other monetary tools to influence the levels of consumer spending and aggregate demand (AD). In particular monetary policy aims to stabilise the economic cycle – keep inflation low and avoid recessions. Aim of monetary policy Low inflation. UK target is CPI 2% +/-1. Low inflation is considered an important …
The difference between CPI and PCE seemed relatively insignificant. However, a big issue is the difference between CPI and Core CPI. CPI is the consumer price index. A measure of the cost of living for the typical person. Core CPI is the CPI – energy and food prices. Energy and food prices are removed because …
Readers Question: What are the main problems of the current UK economic situation? Low economic growth and in particular stagnant real wage growth Poor productivity growth since 2008 – which affects long-term growth prospects. Uncertainty from Brexit and likely costs to trade from new custom arrangements. Manufacturing sector State of the housing market – expensive …
In the nineteenth century, the UK was characterised by high levels of income inequality. However, from the start of the twentieth century until 1978, there was a steady fall in inequality and reduction in poverty (both relative and absolute). However, the 1980s saw a sharp rise in inequality which has not been reversed in the …
Readers Question: What do you understand by the terms ‘monetary policy’ and ‘fiscal policy’? Explain with reference to a country of your choice:- a) How these policies have been used by the government to try to achieve its objectives Definition – monetary and fiscal policy Monetary policy is managed by the Bank of England. They have …
This privatization was left to the last for a number of reasons Loss-making nature of British Rail Heavy dependence on external subsidies for rural and provincial services The need to see safety as an overriding priority Positive externalities of railways, – taking traffic off congested roads BR was an integrated national network with a complex …
Abstract. A look at the economic effects of Britain leaving the European Union. Summary. The UK has been a member of the European Union since 1973. The European Union gives many economic benefits to member countries. These include free trade, inward investment from European companies, free movement of labour, harmonisation of regulations and qualifications and …
Economic stats, graphs and source of data My page with graphs Main ONS dataset Useful direct links Economic growth National income acc. Real GDP | % quarterly Inflation Inflation Time series CPI annual % Unemployment Labour market ILO % Current account b of p Trade C.A % GDP Budget deficit Public finances at ONS PSNB …