The balance of payments is the record of a country’s transactions / trade with the rest of the world. The balance of payments consists of: Current Account (trade in goods, services + investment incomes + transfers) Capital Account / Financial Account (capital and financial flows, net investment, portfolio investment) Errors and omissions. It is hard …
The competitiveness of British industry refers to whether British goods/service are more attractive to consumers than in other countries. A big factor is the relative price of British goods and services compared to other economies. However, as well as price competition, for many goods non-price competition will be important. For example, British fashion labels may …
An essay on the economic effects of a falling dollar. Between 2006 and early 2008, there was a 15% fall in the trade-weighted value of the dollar. Then from 2008 to 2011, there was another fall of around 15%. In summary, a fall in the value of the dollar will have these effects. Makes US …
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 …
The great recession refers to the economic downturn between 2008 and 2013. The recession began after the 2007/08 global credit crunch and led to a prolonged period of low/negative growth, rising unemployment and a period of fiscal austerity. In particular, the great recession highlighted problems within the Eurozone which experienced a double-dip recession and high …
Main topics in macroeconomics Balance of payments Policies to reduce current account deficit Budget deficit Policies to reduce budget deficit Economic growth Causes of Boom and Bust Cycles Policies to increase economic growth Theories of economic growth Recessions Environmental economics Fiscal policy Globalisation Exchange rates Effect of an appreciation Effect of devaluation European Union The …
Since 1978 the Chinese economy has maintained economic growth at an average of nearly 8%. By western standards this is remarkable. The UK, by contrast, has grown at an average rate of 2.5%. However, despite the impressive figures, there are many serious economic problems resulting from economic growth. Chinese GDP In particular, the growth rate …
Definition of Capital Flight – When a large number of people in a country move capital and assets from one country to another. Usually in response to a political and/or economic crisis. For example, on news that the banks of Iceland were bankrupt, many investors took their savings out of Iceland and into other countries. …