The Russian fossil fuel industry is facing a real crisis. Western sanctions and Russia’s own embargo on exports to the West mean that the industry is facing long-term decline. Already there have been reports of ‘capping’ of natural gas facilities. This means that natural gas is burnt at its source because the industry cannot sell …
The EU relies heavily on Russia for the import of natural gas – around 40% of all natural gas at the start of 2022. Since June 2021, there has been a 60% cut in Russian gas, and this has caused considerable distress in the form of higher prices, inflation, lower economic growth and potentially devastating …
A recession is a period with a significant decline in economic activity characterised by falling GDP, rising unemployment and a decline in real incomes. A quick and simple definition of a recession (used in the UK and EU) is – negative economic growth for two consecutive quarters. The US uses a more comprehensive definition of …
Huge volumes of waste are sent to landfill every year. In 2018, the US created 292.4 millions tons of trash, of which nearly half 146 million tons ended in landfill. In recent years, much effort has gone into encouraging people to recycle, and rates of recycling have increased significantly (in the US from 9% (1980) …
Higher interest rates increase the cost of borrowing, reduce disposable income and therefore limit the growth in consumer spending. Higher interest rates tend to reduce inflationary pressures and cause an appreciation in the exchange rate. Higher interest rates have various economic effects: Effect of higher interest rates Increases the cost of borrowing. With higher interest …
The UK, along with many other countries, is experiencing a real cost of living crisis with inflation rising faster than average wages. The cost of living crisis is driven by higher transport costs, and energy and food prices, and this is forecast to continue to worsen over this winter. What are the various policies which …
What are the implications of an ageing population? An older population presents many challenges to labour markets, government tax, government spending and the wider economy. The Population Timebomb – How An Ageing Population Will Change UsWatch this video on YouTube One of the great achievements of the Twentieth Century is a dramatic rise in life …
Inflation is a period of rising prices. The primary policy for reducing inflation is monetary policy – in particular, raising interest rates reduces demand and helps to bring inflation under control. Other policies to reduce inflation can include tight fiscal policy (higher tax), supply-side policies, wage control, appreciation in the exchange rate and control of …