Unemployment Compared – Portugal and Spain v UK and US
A quick look at a comparison between the economies of Portugal and Spain, with the economies of the UK and US. Four countries with very different paths of unemployment.
Search Results for: economic impact
Wages Declining as a Share of National Income
The ILO recently produced their growth and wages report for 2012/13. This suggested that across the developing world, labour markets are being characterised by falling real wages and a decline in labour’s share of national income. In particular: Real wage growth has been flat – even negative in the past few years. There is an …
Triple Dip Recession in UK Likely
Unfortunately, despite the post-Olympic bounce in GDP, other aspects of the UK economy look pretty grim. In manufacturing and industrial output, there has been no real recovery. In manufacturing it is not so much a triple dip recession – more a prolonged double dip. Manufacturing output is 2.1 per cent lower in October 2012 compared …
Causes of US Budget Deficit
This graph illustrates some of the different causes of the US budget deficit. Source: CBO estimates 2012 | via Krugman This shows how the deficit has been affected by certain issues. Cyclical factors Cyclical spending and lost tax revenues due to recession. Expansionary fiscal policy (economic recovery measures) Financial intervention to bailout banks and financial …
Who Benefits from Quantitative Easing?
Quantitative easing is a process where a Central Bank creates money electronically. It uses this new money to purchase assets and bonds (mostly government bonds) from commercial banks and financial institutions. For more see: Quantitative easing explained Quantitative Easing has helped many holders of government bonds who have benefited from selling bonds to the Central …
Improvements in Eurozone Competitiveness
In the lead up to the Euro debt crisis, there was a marked divergence in competitiveness within the Eurozone. In fact, some economists suggested that the currency imbalances were the root cause of the Eurozone fiscal crisis. (VOX article) However, recent evidence suggests some restoration of competitiveness within the Eurozone. We can examine competitiveness in …
Forecast for Pound Sterling in 2013
A look at the future prospects for the Pound in the coming months of 2013. The Sterling index measures the value of the Pound Sterling against a basket of trade weighted currencies. In Dec 2011 the index was 80.4 By Oct 2011, the exchange rate index has increased to 83.6 This modest appreciation in the …
Diagrams on Elasiticity
Diagrams showing different types of elasticity – inelastic demand, elastic demand, inelastic supply, elastic supply. The effect of tax Inelastic Demand Elastic demand Elastic Supply Inelastic Supply Effect of elasticity on impact of subsidy Effect of Tax on Elastic Demand Effect of Tax on Inelastic Demand