Forecasts for Pound to Euro 2013
Looking at the economic factors which will influence the value of the Pound Sterling to the Euro in the future.
Search Results for: the great depression uk
The Treasury View
Interesting to read this from Lord Oakeshott, the Liberal Democrats’ former Treasury spokesman “The economy is as flat as a pancake. No growth means no progress in the Coalition’s central purpose of reducing the deficit. We Liberal Democrats did not sign up to stagflation and a vicious circle of self-defeating cuts. It is time to …
Problems the economy might face in recovering from a period of recession
To recover from a recession there needs to be either a rise in AD or a readjustment in prices and wages. Classical economists argue that a recession will only be temporary because labour and product markets are flexible. However Keynesians argue that wage and price rigidity can keep the economy below full capacity for a …
Contagion definition
Define contagion: Contagion is the situation where there is growing concern about the state of a bank or firms financial affairs. This fear spreads making the initial situation worse due to a collapse in confidence. For example, if people worry that a bank may be going bankrupt then people will start withdrawing money. As people …
Criticism of Austrian Economics
Austrian economics places great stress on free markets. It argues government efforts to control the economy cycle invariably make it worse. The main criticisms of Austrian economics include: The belief in the efficiency of markets is countered by many examples of market failure. E.g. growth of subprime mortgages / securitisation leading up to credit crisis …
Financial Implosion
Readers Question: What do people mean by countries/society/financial implosion? Financial implosion implies a serious financial crisis where a country experiences a severe economic and financial crisis. The concept of implosion suggests that a crisis in one part of the economy would have a knock on effects to other parts as well – leading to a …
Could US Make Same Mistakes as Europe?
In 2009, US and EU unemployment rates both stood at 10% – but since then EU unemployment has increased to 12% and US unemployment fallen to 7.9%. (see: US v EU unemployment) These contrasting fortunes in unemployment are a reflection of diverging rates of economic growth. Whilst, Europe has entered a double dip recession, the …
Did Generous Welfare Payments Cause the Recession and Unemployment?
Casey B. Mulligan, from the University of Chicago suggests a theory for a major cause of the great recession and the rise in US unemployment post 2008. – Higher welfare payments. ..Redistribution, or subsidies and regulations intended to help the poor, unemployed, and financially distressed, have changed in many ways since the onset of the …