One feature of the current economic malaise is that growth predictions for the UK economy have been consistently over-optimistic. For example, the Office for Budget Responsibility originally forecast economic growth of 5.7% between 2010 to mid 2012. The economy failed to meet this target, growing by just 0.9% during this period. To be fair to …
Readers Question: What should the government do to improve the American standard of living? How could the President + Congress, make the biggest difference to improving American standards of living in the long run? These are a few policies which I feel would improve US living standards. 1. Reduce Unemployment. The rise in US unemployment …
What are the key issues affecting the UK economy over the next few years? Recession and Recovery The biggest problem facing the UK economy is the lack of economic recovery. After a fall in GDP of 6% in 2008/09, the economy briefly recovered, but the recent double dip recession of 2012 has left the UK …
Readers Question: Would a devaluation help Greece? If you look at the Greek economy, their exchange rate has been effectively overvalued for several years. This overvalued exchange rate has caused Greek exports to be relatively uncompetitive and has caused various economics problems. Combined with efforts to tackle an unsustainable debt level, the over-valuation has contributed …
The Chancellor George Osborne is coming under pressure to alter government policy and promote economic growth through higher public spending financed by government borrowing. After two years of focusing on deficit reduction, critics argue the government should change approach and concentrate on getting the economy out of the persistent recession. The IMF recently stated: “The …
The purpose of harmonised competitive indicators is to show changes in relative competitiveness of countries. They are are also consistent with the real effective exchange rates (EERs) of the euro. This shows the divergence in competitiveness between a country like Germany De (improved competitiveness) and other countries like Greece and Ireland which have seen higher …
As a keen cyclist, I went down to London last weekend to watch the Olympic road race. It was pretty exciting standing on the Fulham road watching the peleton go past. That part of London seemed pretty busy and nearby cafes were doing very well. However, in the centre of London, many shops and hotels …
Readers Question: Will Cutting Public spending bring economic growth?Do Countries with lower government spending as a % of GDP have higher economic growth rates? After recent data on -0.7% growth in Q2 2012, several experts offered suggestions for restoring economic growth to the UK. In the Guadian, Sheila Lawlor suggested (link): The UK’s output figures, …