Under Quantitative Easing, the Central Bank created large quantity of bank reserves and bought bonds. Commercial bnks saw an increase in bank reserves. Initially, this made it cheaper for the UK Treasury to borrow. The Bank of England gained interest on the long-term bonds it bought, and for a time paid no interest on the …
Since the financial crisis of 2009, the UK economy has experienced a real decline in economic fortunes. Last month, we entered a recession, but real GDP per capita has been stagnating for a decade. This poor economic performance is creating its own spiral of problems- rising debt, low investment and creaking public services. Recent budgets …
After a sharp increase in the 1980s, income inequality appears to have slightly improved in recent years. However, this general measure of inequality fails to capture many of the increasing divides across the country. Whilst the income share of the top 1% has grown, the poorest 10% have faced falling living standards in a cost-of-living …
Why Norway Became Rich From Oil But The UK Lost OutWatch this video on YouTube Norway and UK are neighbours, separated only by the North Sea, with its rich mine of oil and gas reserves, but whilst Norway has used its good fortune to become the richest country in the world. The UK’s oil bonanza …
The UK economy remains on a knife edge, after a year of stop-start economic growth, the Bank of England forecasts continued economic stagnation into 2024. Other forecasters are marginally less pessimistic, hopeful that a fall in inflation will help to increase real wages and consumer spending. UK Economic Forecasts for 2024Watch this video on YouTube …
The economist recently warned that governments are living in a fiscal fantasyland, failing to confront dire and growing levels of debt. High inflation and rising interest rates have caused a surge in debt interest payments. By next year, the UK’s debt service payments will be similar to the entire education budget. It is a similar …
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 …
In the post-war period, there was a dramatic decline in income inequality in the UK. However, from the early 1980s, this went into reverse with a sharp rise during the Thatcher years. Unequal Britain: UK's Inequality Crisis ExplainedWatch this video on YouTube The UK has now one of the highest levels of inequality in the …