The current account on the balance of payments measures the inflow and outflow of goods, services, investment incomes and transfer payments. The main components of the current account are: Trade in goods (visible balance) Trade in services (invisible balance), e.g. insurance and services Primary income account – includes – compensation of employees, investment income from …
This is a graph showing US inflation in the post-war period. In a nutshell, US inflation has been fairly low and stable in the post-war period. The exception being in the 1970s and early 1980s when inflation became embedded. After the Second World War there was lingering inflation for a few reasons. Firstly, the war …
In May 2016, Britain voted to leave the EU. The only reason David Cameron held a referendum was because he was convinced he would win. But, he hadn’t expected Boris Johnson to make a last minute switch and help galvanise a Vote Leave campaign. Brexit – The Big MistakeWatch this video on YouTube The result …
Imagine an economy with high wages, low debt, public services which work, a short working week and free university tuition. It’s kind of the opposite to the UK, which has seen wage stagnation, growing debt, unaffordable housing and long waiting lists. How Danish Living Standards Surpassed UKWatch this video on YouTube This model economy does …
When displaying time series data, it often makes sense to use index numbers. Index numbers are a simple way of making it easier to compare numbers over a period of time. Index numbers measure relative changes in the price of a sum of representative data. For example, the FTSE-100 is an index displaying the average …
Denmark is an economic powerhouse with a GDP per capita higher than Germany, Netherlands and the UK. It is one of the richest countries in the world, but remarkably unlike Norway has no particular oil riches. Also, it has achieved its wealth despite having one of the highest tax rates in the world. What is …
In the past four decades, China has undergone a genuine economic miracle. 800 million people have been lifted out of poverty, through economic growth that has often averaged close to 10%. China’s rise has changed the world. Our shops are flooded with cheap Chinese consumer goods, and many of our factories closed down. China went …
The UK housing market is a nightmare for first-time buyers. Average deposits £47,000. House prices eight times income, and for renters it’s even worse with rents remorselessly rising. But, there’s a new government and they have pledged to build 1.5 million homes in the next five years. Assuming they can achieve this goal, which is …