I only take a passing interest in American politics. I’m just grateful not to live in Ohio, where voters have been subject to hours and hours of political ad campaigns. According to a newsnight presenter, if the 150,000 ads were all lined up, they would last for four consecutive days. (although I’m sure that would …
Why have countries in the Eurozone faced greater difficulties in promoting economic recovery? How does a country with its own currency find greater flexibility in overcoming a recession? 1. Impact of Currency and Bond Yields A striking feature of recent years is that countries in the Eurozone have been significantly more susceptible to rising bond …
A helicopter money drop is a form of monetary policy in which a Central Bank prints money and distributes it directly to households/consumers. The aim of helicopter money is to boost nominal GDP, overcome deflation and help reduce unemployment. In normal circumstances, printing money will be inflationary. Economists usually suggest helicopter money in a liquidity …
When President Holland was elected in the summer, he suggested that Europe would turn against austerity and promote economic recovery as the most important objective. However, despite his early promises, the French budget is strongly deflationary. Given the state of the current French and Eurozone economy, this budget is likely to push France into prolonged …
Readers Question: What should the government do to improve the American standard of living? How could the President + Congress, make the biggest difference to improving American standards of living in the long run? These are a few policies which I feel would improve US living standards. 1. Reduce Unemployment. The rise in US unemployment …
What are the key issues affecting the UK economy over the next few years? Recession and Recovery The biggest problem facing the UK economy is the lack of economic recovery. After a fall in GDP of 6% in 2008/09, the economy briefly recovered, but the recent double dip recession of 2012 has left the UK …
Ever since the Euro debt crisis hit the headlines in 2008, economists have argued that the ECB need to act and buy bonds to prevent liquidity fears and prevent bond yields from being artificially high. Held back by fears of the ECB exceeding their mandate, we have watched in despair, as bond yields on Eurozone …
The Chancellor recently spoke on the Andrew Marr show. G.Osborne said of the UK economy: “We are getting on top of the deficit… They are difficult times for the British economy; it’s a difficult time for the world economy, but our economy is healing. We have to do more and we have to do it …