Policies to halt the slide of the dollar 1. Increase US interest rates · Higher interest rates will attract more hot money flows into the US and therefore cause an appreciation. · Also higher interest rates will cause an increase in savings and a fall in spending this will help reduce imports into the US …
To recover from a recession there needs to be either a rise in AD or a readjustment in prices and wages. Classical economists argue that a recession will only be temporary because labour and product markets are flexible. However Keynesians argue that wage and price rigidity can keep the economy below full capacity for a …
Assess the extent to which governmentsts are likely to encounter difficulties when attempting to respond to economic shocks that affect economies such as Germany and the UK (30) Economic shocks are events which adversely affect the economy and the governments macro economic objectives such as growth, inflation, unemployment and the balance of payments. Economic …
Some of the supply side policies used in the UK during the 1980s and 1990s. 1. Privatisation. There has been an extensive privatisation campaign, most of the major utilities such as Gas , Water and Electricity were sold by the government and floated on the stock market. In some industries like telecommunications it has led …
European Union For AQA Unit 4 Origins of the EU Economic Integration Single Market What it involves Efficiency of the Single Market Common Agricultural Policy Reform of the CAP Expansion of the EU Monetary Union What it involves How it affects Monetary Policy Impact of European wide inflation targeting and interest policy Arguments for Against …
Free general advice for Studying Economics Learn the basics first. You can answer a lot of questions just through mastering supply and demand questions. Practise Questions. To learn you need to practise and answer questions yourself. Don’t just read the textbook. Reading is a form of passive learning; there is a limit to what you …
Black Wednesday refers to the date 16 September 1992, when the UK was forced out of the ERM. The Exchange rate mechanism was a key policy tool for the Conservative government. The logic of joining the ERM was that the chancellor Nigel Lawson believed that being in a fixed exchange rate Would help to reduce …
Bretton woods was a semi-fixed exchange rates set up in the post-war period. The Bretton Woods exchange rate system had a system of pegged exchange rates with currencies pegged to the dollar. The dollar was fixed to the price of gold ($35 an ounce) – giving the US Dollar a fixed value. The currencies in …