Since 2000, there was only one major economy which has seen a fall in real GDP per capita – Italy. In this period, Italy has experienced a shocking fall in productivity, rising debt, and prolonged economic turmoil. We are told the Italian economy is riven by cronyism, falling birth rates, and a regional divide. Yet, …
Debt/Equity Ratio = Total Shareholders’ Equity/Total Liabilities What is a liability? A liability is something the company owes Loans Mortgages Bonds Accounts you need to pay Bond issues is a liability because ultimately bank has to pay 20. A company has an issued share capital of £1 million and an outstanding corporate bond issue of …
Reader’s Question: Why does printing money cause inflation? Does this always occur? Summary If the money supply increases faster than output then, ceteris paribus, inflation will occur. If a government prints extra money, households will have more cash and more money to spend on goods. But, if the amount of goods stays the same, the …
Why The Russian Economy Defied Predictions of CollapseWatch this video on YouTube Following the invasion of Ukraine in March 2022, the Western powers introduced unprecedented levels of sanctions, freezing $300bn of Russian assets, the Ruble collapsed, inflation rose, and the Russian economy headed into recession. It seemed the perfect storm to create deep economic problems. …
New Labour – The Economic Impact of Blair and BrownWatch this video on YouTube By 2007, New Labour had presided over the longest period of economic growth in the post-war period. It was the goldilocks economy with low inflation, low unemployment and an impressive rise in spending on the NHS and education. But, the devastating …
It’s official the UK entered into recession last year with GDP falling over a period of six months. However, with only a 0.4% fall in GDP some argue the recession is relatively mild. This is Not a Mild RecessionWatch this video on YouTube But, if we look at real output per capita, the UK economy …
Iss the UK broke? How much can the government borrow? Has the government run out of money? Firstly, how does the UK compare to other countries? The UK is not alone in running government debt close to 100% of GDP. But, it is still nearly double European countries like Norway and Ireland. But, this graph …
Is There Any Hope For The UK economy? – And Other QuestionsWatch this video on YouTube Q. Is there hope for the UK economy? There is hope for the UK, despite very poor past 15 years, it is still a moderately wealthy country, with reasonably basic economic institutions. We are not in the same league …