How will UK house prices be affected by Brexit – in both the short term and long-term? In the past few decades, the UK property market has been characterised by a long-term rise in real house prices. UK house prices have risen faster than inflation – especially in London and South. In fact, we could …
At the 1992 General election, the Conservative Party won a stunning electoral victory – despite being in the middle of a self-imposed recession. Many point to this as an example of how the press can influence national debate and influence elections. The 1991/92 recession was a classic example of a boom and bust. It wasn’t …
The ‘pension time bomb’ refers to how demographic changes will cause a rise in the percentage of people entitled to a pension (both state and private). An ageing population leads to smaller workforce, more spending on pensions (and healthcare) and could require higher taxes to meet spending commitments. . Some argue this is a serious …
In economics, the framing effect states consumer choices will be influenced by how information is presented. One of the challenges of an economist is to find correct statistics and present them in a way which offers a meaningful and fair portrayal of the situation. Everyone has certain political bias and it can be tempting to …
Readers Question: How Long do Recessions last? There is no exact answer. Recessions can last for varying time lengths depending on the causes and also the response of governments and consumers. If recessions are caused by a tightening of monetary policy (higher interest rates to reduce inflation), then it tends to be easier to get …
A devaluation (depreciation) occurs when the exchange rate falls in value. This causes exports to be cheaper and imports to be more expensive. In theory, it can help increase economic growth, though it may cause inflation. In theory, a devaluation will cause the following to happen: The price of UK exports will be lower in …
There have been numerous economic predictions springing from a possible Brexit including recession, unemployment, falling Pound, falling stock markets, collapsing house prices, inflation and the end of civilisation as we know it (I’ll leave predictions of world wars e.t.c. for someone else to grapple with). But, what is the economic theory behind these economic predictions? …
At this time of the year, my students are preparing for their exams with a mixture of trepidation, confidence, resignation, hope or fear. The best way to prepare is to simply do one thing at a time. Concentrate on making small improvements and importantly keep practising past papers. Students who just do a bit of …