The European Union is facing the prospect of a serious bout of deflation (or at least, very low rates of inflation / disinflation) Deflation occurs when prices fall. But, very low rates of inflation are considered to raise problems associated with deflation. In the Eurozone, the main index of inflation has fallen to 0.7% – …
I’m currently writing a 2,500 word essay on ‘UK Austerity’ for the magazine Economic Review. I think the idea of these magazine articles is to present a ‘balanced view’ so I’ve been looking up the case for austerity as well as the case against. As far as I can see the economic rationale for austerity …
A good post by Simon Wren Lewis on future UK macroeconomic policy – learning from the experience of the past few years. – Bold macroeconomic policy for a new government. Essentially, it involves committing to a more flexible fiscal policy which can take into account the different requirements of liquidity trap (ZLB). Monetary policy should …
Quick links for main economic statistics My page with graphs Main ONS dataset Useful direct links Economic growth National income acc Real GDP | % quarterly Inflation inflation series CPI annual % Unemployment Labour market ILO % Current account b of p pnbp C.A % GDP Budget deficit psf at ONS | psf at …
In recent years, I’ve frequently stated that fiscal consolidation can actually increase debt levels. It may seem a paradox because fiscal consolidation aims to reduce the budget deficit by increasing taxes and cutting spending. Yet, under circumstances, policies to reduce debt levels can actually cause a rise in debt to GDP. This seems to be …
Interesting post by David Blanchflower about the best form of economic stimulus – Here’s a way to end the slump (Useful for any economic student wishing to understand marginal propensity to consume – mpc) A fiscal stimulus could involve a tax cut or government spending increase. This should increase overall aggregate demand, and boost economic …
The Chancellor recently spoke on the Andrew Marr show. G.Osborne said of the UK economy: “We are getting on top of the deficit… They are difficult times for the British economy; it’s a difficult time for the world economy, but our economy is healing. We have to do more and we have to do it …
It may appear that many countries in the Eurozone are on the verge of bankruptcy. Governments in the Eurozone are implementing savage austerity cuts as they seek to reduce their deficits. These austerity measures have created widespread unemployment, poverty and economic depression. However, although millions are experiencing the impact of debt crisis, it is ‘comforting’ …