In 2008, the world global banking system went into meltdown after the bankruptcy of Lehman Brothers. It stemmed from a toxic combination of falling house prices, rising interest rates and sub-prime mortgage debt. To relive the 2008 Credit Crunch – see this article on Credit Crunch Explained (which was one of my earlier articles as …
Countries across the world are ageing. We are living longer but birth rates are falling faster than expected. The UK will soon see more elderly people than young adults. It is the same in the US with older adults more numerous than children by 2035. The population of Europe is forecast to fall by 175 …
The UK housing market is something of a national obsession. But, it faces numerous problems High prices (especially affecting younger people) High cost of renting – Shortage of properties Decline in birth rates due to high living costs Concealed households – people having to live with parents Inequality Volatility of prices Homelessness Since the early …
The UK tax burden has increased to the highest level since 1948. In the past three decades, the burden has risen from 28% to 37% of GDP and will continue to rise with the typical household expected to pay an extra £650 a year from April. However, whilst in 1948, the government were setting up …
UK bond yields are the rate of interest received by those holding Government bonds. Governments sell bonds (also called gilts) via the Debt Management Office to fund their budget deficits. Bonds are a way for the government to borrow – a bit like the government taking out a loan. Government bonds are frequently traded on …
Summary of Phillips Curve The Phillips curve suggests there is an inverse relationship between inflation and unemployment. This suggests policymakers have a choice between prioritising inflation or unemployment. During the 1950s and 1960s, Phillips curve analysis suggested there was a trade-off, and policymakers could use demand management (fiscal and monetary policy) to try and influence …
In the past 13 years, the UK has seen an unprecedented stagnation in real incomes. If Pre-crisis growth had been maintained, real incomes would be around £7,000 higher. Whilst global events like Covid and Ukraine War are mitigating factors, the UK economy has still performed relatively worse, with one of the poorest performances in real …
Do we really need to build 300,000 Homes a year – How Bad is the Housing Shortage? When we talk about UK housing, we tend to think of an acute shortage. And it is not surprising given the fact house prices have reached nine times income, and we face a crisis of affordability. But, do …