Readers Question: Should Greece pull out of the euro ? They are in the fifth year of recession despite EU bailouts – it seems like pouring money down a black hole. Yes. I believe they should leave the Euro. I put some arguments for and against here – Should Greece leave the Euro. Leaving the …
The election of Francois Holland as French president is important for changing the dynamics of the EU. There is currently a strong acceptance of the need for continued austerity and fiscal targets. However, under the weight of soaring unemployment, European voters are becoming increasingly disenchanted with this recipe for low growth and high unemployment. But, …
Since coming to power, the Conservatives have made reducing the UK’s record peace time deficit a high priority. It has been argued that drastic action was necessary to avoid the UK’s debt becoming unmanageable. David Cameron argues without rapid spending cuts, the UK could be facing rising interest rates and the prospect of debt default, …
Is this the future of a world without oil? Readers Question: What would a world without oil look like? Oil is currently the most important commodity. It is vital to transport (air, sea, road and rail) and also the production of goods like tar and plastic. Without oil, society and the economy would look quite …
Most European countries have embarked on a range of austerity measures designed to reduce their budget deficits. Why have austerity measures been pursued with great vigour in Europe? What is impact of austerity measures on economic activity? Why Austerity? Pressure from Bond Markets. Investors have become nervous about holding debt in several Euro-zone countries. This …
Readers Question: How is it possible for countries with massive debt to have a strong currency, e.g Japan and the US? Sometimes countries can have large debts that are sustainable. In the case of Japan and the US, the general consensus is that there is a very low risk of default. US debt is very …
An Overview of the Indian economy in 2012 and its prospects for the future. (Depressed by events in Europe, a look at an economy with a very different economic outlook). Summary In the past few years, the Indian economy has been growing rapidly – (e.g. 8.5%2010-11). However, this growth has led to an increase in …
Japan has traditionally had a high savings ratio, but, in past decade the savings ratio has fallen to be close to European / US levels. Graph showing Japan Savings Rates Japan’s economy chasing illusions Since 1998, though Japanese saving rates have declined. The graph is a bit hard to read, but, since 2004, Japanese saving …