Readers Question: Where is the US economy headed? Is it inflation or depression? Recently, Goldman Sachs predicted a rough year ahead for the US Dollar. They forecast the dollar may fall against Pound Sterling to $1.85 in 12 months. Against the Euro, they forsee it to fall to $1.55 in a year’s time. Exchange rates …
Definition of Fiscal Space – The difference between the current level of public debt and the level of debt that is sustainable and manageable. A key issue for many advanced economies is being aware of the level of government borrowing that is sustainable in the long term. Basically, how much can a government borrowing without …
Readers Question: Creating a post recession; what steps should the EU take to reform the banking sector? I have looked at this important issue in this essay: – Steps to Avoid Financial Crisis Reforms To The Banking Sector Could Include Regulation of Mortgage Products Unconventional Mortgages like 100% mortgages, self-certification, interest only, mortgages several times …
Readers Question: Why do most people prefer inflation to deflation? is it because such guys are business owners and they don’t to earn a little or what ? what about poor people. how can they make ends meet? think properly, think widely, think about the poor first. then I am sure, you are going to …
Definition of Income Gearing – this is the percentage of Post tax profits that are spent on obligatory debt interest payments Household Income Gearing – The Bank of England measure obligatory payments by households on paying interest and other regular repayments on debt. This is calculated as a proportion of post-tax income. What Factors influence …
Readers Question: From my studies in economics I have always known that when there is a recession, there is a high tendency for people to borrow at a low interest rate since there is a fall in the mpc due to high unemployment right? In a recession, people tend to borrow less and save more. …
Readers Question: Actually, I would like to know if the current UK’s recession is caused whether economic policies which have been practised or the UK has been affected from outside the country? The recession is caused by a mixture of domestic and international factors. For more detailed explanation see: Economic crisis explained Who is to …
Readers Question. I was just reading the wiki page about Commercial Paper and I understand the gist of it; however, one thing that always confused me about it is: Since commercial paper is a cheaper alternative to a bank line of credit for companies to finance their daily operations, wouldn’t it make sense to just …