The world economy is already entering a very deep recession, with GDP falling by an estimated 20-25%. Unemployment will rise very fast as large parts of the economy close down. An optimistic assessment is that the economic shock will be short-term, policymakers are responding with as much monetary and fiscal help as they can, and …
Readers Question: I only have $10,000 in my bank. With this virus situation, what is going to happen to the value of my money? Serious question. Do I try to exchange my money to another foreign country currency? Help, please. I am 68 years old, no pension and no job. George Firstly, I would not …
Price gouging is a situation where business take advantage of an external crisis to charge excessive prices for basic necessities – selling the goods significantly above their usual price. Many countries have laws against the practise of price gouging – to protect consumers against unfairly high prices during a national emergency. Example of price gouging …
I started www.economicshelp.org in Nov 2006. Within a year, I was writing about the US housing crash, the credit crunch and the recession of 2008/09. It was a turbulent period and there was a surge of interest in economics, which helped the economics blog to take off (which left me with mixed feelings!) But, the …
A look at various economic policies to deal with an economic crisis, such as a fall in GDP. Economic crisis could involve Lack of economic growth/recession High Unemployment Long-term structural deficits Lack of confidence in finance and consumer sector. Rapid devaluation Solutions to economic crisis Fiscal policy – When the government influences demand through changing …
Movements in the stock market can have a profound economic impact on the economy and individual consumers. A collapse in share prices has the potential to cause widespread economic disruption. Most famously, the stock market crash of 1929 was a key factor in precipitating the great depression of the 1930s. Yet, daily movements in the …
Crowding in occurs when higher government spending leads to an increase in private sector investment. The crowding in effects occurs because higher government spending leads to an increase in economic growth and therefore encourages firms to invest because there are now more profitable investment opportunities. Difference between crowding out and crowding in When the government …
The highest rates of obesity in the world are found in the small pacific islands, Nauru, Cook Islands with close to 60% of the adult population meeting definition of obesity as measured by the BMI (body mass index) Excluding these small pacific islands (with very small population) the greatest levels of obesity are found in …