Definition of debt crisis. When a country cannot or will not pay the interest repayments on a debt. In the case of a country these are its external debt commitments. In the 1980s there was a major international debt crisis because several less developing countries in Latin America and Africa defaulted on their debt repayments. …
A Bear investor is someone who is pessimistic and expects shares and asset values to fall. A Bear market is when the overall market sentiment is negative and there are more pessimists than optimists. In a bear market falling share prices are likely to become a self fulfilling prophecy. Because people expect shares to fall, …
Definition of Black Market A ‘black market’ is a sector of the economy where transactions occur without the knowledge of the government and usually involve the breaking of certain laws such as filing proper tax returns. Other terms may include Underground market Hidden economy Grey market Unreported markets A black market can also refer to …
A look at the contradiction between health care spending and actual treatment. The US which spends more on private sector health care spending, still also has one of the highest levels of government spending on health care per capita. Furthermore, health care costs continue to rise, and place one of the greatest strains on government …
Broadband access in the UK. Also showing different access points to broadband. In the space of less than 10 years, Broadband access has come to be seen as a vital public amenity. It is used for business, retail and is increasingly seen as one of the factors which can show the degree of economic development …
One feature of the recent crisis has been the degree to which governments underestimated the forecast rise in government borrowing. The IMF produced a report which looked at forecast debt from 2007, and what debt actually was three years later. In ten selected countries, the increase in the gross debt ratio 31.8 2007 forecast for …
Readers Question. Can you explain why the Government and Economic Commentators are talking about a multiplier (in relation to budget cuts) of between 0.5 and 1, whereas I always thought that the GDP multiplier was bigger than this. Just to summarise a multiplier of 0.5 would mean fiscal consolidation (spending cuts) of £1bn, would lead …
The government have repeatedly pointed to their ‘achievement’ of cutting the budget deficit by 25% in the past two years. But, how has this been achieved? and has it actually helped the UK economy? UK Net Borrowing 2007-08 £40.3bn 2008-09 £104.2bn 2009-10 £167.4bn 2010-11 £145.1bn 2011-12 £119.3bn 2012-13 £127.3bn – estimated This shows a 25% …