Readers Question: In Risks and benefits of Quantitative easing one point the programme mentioned was: The scale of quantitative easing could make it impossible to sell bonds back to market and this will damage the UK’s ability to borrow in the future. If the UK’s ability to borrow is constrained, this will lead to higher …
Several readers questions on the economy, such as different types of economic systems and the role of money and the economy. Jarrow crusade in the 1930s – resulting from a failure of the economic system and mass unemployment. 1. What is an economic system? An economic system is the general way that an economy …
To what extent can the government help boost domestic industry and manufacturing? In recent weeks, several politicians have talked about their desire to help UK manufacturing and boost industrial production. It may be a noble endeavour to try and boost UK industry and rebalance the economy away from financial services to manufacturing. But, how practical …
How much is the internet helping to increase productivity? Do distractions like Facebook and Twitter mean the overall benefits of the internet are less than we might hope? How does the internet compare to other technology revolutions, such as stem power and electricity? I often work from a cafe. It’s a nice combination – good …
Readers Question: I wanted to ask if it is necessary to include some facts, figures or information about what is really going on in the world. I am not really sure about it. I’ve seen my friends include details like the National Income figure of some countries or mention recession and what is really going …
Readers Question Why did bond yields in the USA rise at news of the Fed Tapering back in August? The Federal Reserve has been engaged in a policy of quantitative easing. This involves: Creating money electronically Using this created money to buy assets, such as government bonds. The aim of quantitative easing is to stimulate economic …
The UK housing market always provides something to write about. Just when you thought house prices were already too expensive. It looks like the government’s second phase of ‘right to buy’ could push up prices even more. The scheme allows buyers to purchase a property under £600,000 with just a 5% deposit. The government have …
A debt default means the US is unable to pay back US bond holders the full value of their bonds. If investors lost money from US Treasuries, it would cause widespread financial panic, leading to a fall in bank lending, rising bond yields, a fall in the value of the dollar and the possibility of …