Readers Questions: I want to know the economic reason behind: Summer/Winter vacations in school? or: Why we have summer/winter vacations in school. This is an interesting question, especially as I have just finished teaching for the year and begun the long summer holidays myself. Possible economic reasons Non-monetary benefit for teachers. Generally, teachers pay is …
“Water, water, every where, Nor any drop to drink.” – Samuel Taylor Coleridge – The Rime of the Ancient Mariner. The water companies are the least loved out of the privatised utilities, and the lack of rain over the past two winters is making their job much more difficult. For many people, it is hard …
Readers Question: How Has China’s Economic Industrialisation affected the UK’s Economy? And What Policies Could The UK Government Implement To Rectify The Problems Created From China’s Growth? The rapid growth of China’s economy has had various effects on the UK economy – some positive and some which have created challenges and problems for the UK. …
Stats on EU Bond Yields and Debt. See also: Primary budget Deficits of EU EU Bond yields 2010 – 2012 ECB Long term Interest rates EU Bond Yields 2010 – 2014 2010-2012 – Why did Bond yields on Eurozone debt rise, but yields on UK debt fall? One significant cause is that the ECB won’t …
Readers Question: would you be able to comment on what the Labour party’s latest proposal to break up the banks to create competition? I can see some reasons that relate to safe guarding possible failures of large banks which can prove costly if the government are needed to bail them out. However, in terms of …
Readers Question: I understand “externalities” and why certain economic actors will tend to dispute the scale/existence of them. What about the complementary idea, of benefits conferred by many societies which are centrally planned and financed (roads, defence etc.)? Libertarians of any political stripe may downplay/deny their importance though benefitting. My question: is there a technical …
Recently, the US Treasury criticised German economic policy. They argue that German’s export led growth model and anaemic pace of domestic demand is damaging to European and global growth. “Germany’s anaemic pace of domestic demand growth and dependence on exports have hampered rebalancing at a time when many other euro-area countries have been under severe …
A few years ago, I looked at the arguments for and against a tax on ‘fatty foods‘. Generally, I supported the idea of a tax on unhealthy foods because it is a way to price the full social cost of the good. It is an example of a Pigovian tax. A tax which internalises the …