During the 1990s and first half of 2000, Ireland had one of the longest property booms on record. Between 1996 and 2006, the average price of second homes rose in Ireland rose by over 300%. The average price of new houses rose by 250%, according to the Department of Environment, Heritage and Local Government (DoEHLG). …
Another guide to inflationary pressures is the producer price index (PPI). Producer inflation measures the price of goods produced by manufacturing firms. This is sometimes referred to as ‘factor gate prices’ In the year to February 2013 the output price index for home sales of manufactured products rose 2.3%. In the same period the total …
In physics, escape velocity refers to the speed necessary to break free of gravitational field without further propulsion. For example, to leave the earth’s gravitational pull requires approximately 40,320 km/h, or 25,000 mph. This was first achieved in 1959 by Luna I. Very interesting, but what does escape velocity mean in relation economics? It refers to …
The problem: Cyprus debt to GDP ratio increased to 127% (Forbes) in the third quarter of 2012 Cyprus GDP growth in 2012 is estimated to be between -2 and -4% (estimate) The Cyprus economy has been hard hit by the slump in Greece – a major trading partner of Greece Cyprus made significant loans to …
The paradox of toil states that under certain conditions if people wish to work longer hours, this can cause falling real wages and rising unemployment. The paradox is that individuals have an incentive to work longer, but if everybody wants to work longer hours, it can actually cause unemployment. The paradox of toil only works …
In the past five years, the UK has experienced an unprecedented period of stagnant economic growth. The fall in real GDP is longer than even the great depression. Given the unusually depressed nature of the economy, what policies could the UK pursue to boost economic growth and recovery? Here are eight possible policies with their …
Recently, the Economist published an article (You can fool some of the people…), pointing out several economic commentators were increasingly critical of UK economic policy and the Bank of England’s monetary policy in particular. Is the Bank of England really losing grip of monetary policy? or are they doing the best job in difficult circumstances? …
In the post-war period, consumption of vehicle fuel (petrol / diesel) increased dramatically as car ownership rose and more journeys were made by car. However, since 2007, there has been a significant drop in vehicle fuel consumption, with demand falling over 20% Many factors affect demand for vehicle fuel, including price, income, fuel efficiency, quality …