Question: re: article on the great recession. How did the money supply affect the credit crunch and recession? Firstly, we can look at the statistics for the money supply growth rate in the UK. Source: Bank of England This shows strong growth in the broad money supply in the years leading up to the credit …
Back in February 2007, I wrote an essay – Evaluate the effectiveness of the MPC in controlling inflation. The last line was: MPC have done a good job so far. However the real test may come when there is a rise in structural inflation or global instability. Given the knowledge of the past five years, …
Readers Question: I am also interested in Marxist economics and they seem to say the 2007-2008 crisis was a result of over-financialisation of the economy, and that investors/owners could not squeeze surplus out of other sectors in the economy as they once could. Financialisation of an economy refers to the situation where the finance sector …
Readers Question: how to revise for a possible exam question like: discuss the likely effectiveness of ‘expansionary fiscal and monetary policies as means of closing the output gap’ Firstly write down the question on a blank piece of paper. Then try and revise in three parts. Part One – Knowledge define terms Expansionary fiscal policy …
In the past five years, the UK has experienced an unprecedented period of stagnant economic growth. The fall in real GDP is longer than even the great depression. Given the unusually depressed nature of the economy, what policies could the UK pursue to boost economic growth and recovery? Here are eight possible policies with their …
Looking at the economic factors which will influence the value of the Pound Sterling to the Euro in the future.
The great moderation refers to a period of economic stability characterised by low inflation, positive economic growth, and the belief that the boom and bust cycle had been overcome. In retrospect, economists look back on the great moderation in a different light because although inflation was low, there was great volatility in financial markets and …
Summary of UK Economy at the Start of 2013 The UK economy starts 2013 after one of the longest periods of economic stagnation on record. GDP has been flat for the past two years, and real GDP is still way below the 2008 peak. Despite the depressing picture of economic growth, unemployment (7.9%) is much …