Countries across the world are ageing. We are living longer but birth rates are falling faster than expected. The UK will soon see more elderly people than young adults. It is the same in the US with older adults more numerous than children by 2035. The population of Europe is forecast to fall by 175 …
Last week, the Nationwide reported a sixth consecutive monthly fall in house prices. They are now 6% down on last summer’s peak with buyers able to get an average £14,000 off the asking price. Annual price changes are falling at the fastest rate since 2012. Yet, some analysts wonder if the worst is already over? …
UK bond yields are the rate of interest received by those holding Government bonds. Governments sell bonds (also called gilts) via the Debt Management Office to fund their budget deficits. Bonds are a way for the government to borrow – a bit like the government taking out a loan. Government bonds are frequently traded on …
Summary of Phillips Curve The Phillips curve suggests there is an inverse relationship between inflation and unemployment. This suggests policymakers have a choice between prioritising inflation or unemployment. During the 1950s and 1960s, Phillips curve analysis suggested there was a trade-off, and policymakers could use demand management (fiscal and monetary policy) to try and influence …
Many young people will understandably be hoping and praying that there is a substantial fall in UK house prices to make them affordable and escape the broken rental sector. However, if there is a serious house price fall, there is a real danger this would push the UK economy deeper into recession. In the last …
In the past 13 years, the UK has seen an unprecedented stagnation in real incomes. If Pre-crisis growth had been maintained, real incomes would be around £7,000 higher. Whilst global events like Covid and Ukraine War are mitigating factors, the UK economy has still performed relatively worse, with one of the poorest performances in real …
Is the UK housing market fundamentally overvalued? Is the UK Housing Market Really A Big Ponzi Scheme?Watch this video on YouTube Recently, I came across an interesting video which likened the UK housing market to a giant ponzi scheme. But is UK housing like a pack of cards waiting to tumble or are the outrageous …
After inflation has reached the highest levels for decades it is set to fall dramatically over the next few months. I’ll explain why this is, why we will not notice much difference and look at whether economists may be proved wrong yet again on inflation. Recently UK government has announced it plans to cut inflation …