In the past decade there has been a divergence between house prices in different parts of the UK. In particular, house prices in London and surrounding areas has rocketed to unprecedented levels. Source: ONS According to the ONS, average mix-adjusted house prices in September 2015 stood at £299,000 in England, £175,000 in Wales, £199,000 in …
Readers Question: What are the similarities and differences between the Bank of England and the ECB? Thank you They are both responsible for controlling inflation. However, this year, the Bank of England have shown much greater flexibility and willingness to consider other objectives such as full employment and preventing recession. The ECB has been much …
Definition of investment: Investment is the addition to Capital Stock of the economy – e.g. factories, machines, or any item that is used to produce other goods and services Note saving money in a bank is not investment in economic terminology The value of capital stock depreciates over time as it wears out and is …
Accommodative monetary policy means a policy of allowing the money supply to rise in line with national income and the demand for money. Accommodative monetary policy will also usually involve lower interest rates. Accommodative monetary policy may also be known as ‘easy monetary policy’ / loose monetary policy / expansionary monetary policy. The aim of …
The London housing market is one of the most expensive places in the world. In Sept, 2015, the average London house price is now just under £500,000 (BBC) Since 2013, house prices in London have risen 40%, defying a weak economy and stagnant growth in average earnings. London house prices are 7% higher than the …
Readers Question: Who really is a global funds manager? A global funds manager is person who looks after different investment trusts / pension funds. He will decide where and how to invest the fund of money in different markets. Individuals with savings may wish to seek better returns than just saving in a bank with …
Readers question: Does the government determine the interest rate for their bonds? The government finances its debt by selling bonds on the open market. (in the UK they are termed gilts) In the UK, government debt is managed by the UK Debt Management Office DMO. They sell gilts on behalf of the government. Initially, they …
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