Bank bailouts are back. But, why do governments go to such lengths to save banks who took risks, ignored regulations and made a loss? This title about bank failures destroying the economy is not actually linkbait title. I think it is fair to say, the US bank failures of 1930-33 really did destroy a good …
Summary of Phillips Curve The Phillips curve suggests there is an inverse relationship between inflation and unemployment. This suggests policymakers have a choice between prioritising inflation or unemployment. During the 1950s and 1960s, Phillips curve analysis suggested there was a trade-off, and policymakers could use demand management (fiscal and monetary policy) to try and influence …
After inflation has reached the highest levels for decades it is set to fall dramatically over the next few months. I’ll explain why this is, why we will not notice much difference and look at whether economists may be proved wrong yet again on inflation. Recently UK government has announced it plans to cut inflation …
In 2016, some argued the UK had the best of both worlds – membership of the EU, but opt outs from the Euro and Schengen Agreement, plus a generous rebate. However, since leaving the EU, the UK economy has experienced numerous problems, lower growth, lower investment and devaluation of the Pound, with some arguing GDP …
2022 was a shocking year for the world economy, with the Ukraine war pushing up inflation and oil prices, causing economic disruption and lower growth. But, the IMF and World Bank predict 2023 will be even worse with major economies being pushed into a recession by the twin pressures of high inflation and high interest …
In the past few decades, the Chinese economy has grown at a breakneck speed, allowing living standards to soar with GDP per person growing 500% in the past 21 years. China has become a major force in the global economy with an estimated 20% of global GDP by 2027. Yet, the seemingly unstoppable rise of …
Over the next few decades, the Indian economy is forecast to become one of the world’s fastest-growing economies – adding an estimated $400bn a year to its GDP. During the twentieth century the Indian economy often struggled to increase living standards, but in the past decade has started to throw off the shackles of colonialism, …
Inflation in the UK rose to a 40 year record of 11.1% in Nov 2022 – why is inflation so high and will it come down soon? The last time inflation was so high was in 1981. But, inflation of the 1980s was different in that at least wages were keeping up with inflation. Now …