A recession is defined as a period of negative economic growth. However, there can be different causes and types of economic contraction. Different types of recession will influence the length, depth and effects of the recession. These are some of the different types of recessions. Boom and bust recession (e.g. UK 1991/92) – Very high …
The Luddite fallacy is the mistaken belief that new technology leads to higher overall unemployment in the economy. New technology may cause disruption and some workers to lose their job, but the improved technology will also create jobs in other sectors of the economy – balancing out any jobs lost. Historical background In the early …
Since 1980, China has experienced an economic miracle with over three decades of economic growth averaging over 10% a year. This growth has enabled millions of people to be lifted out of absolute poverty and for China to become one of the most dominant economies in the world. Problems facing Chinese economyWatch this video on …
Inflation is generally controlled by the Central Bank and/or the government. The main policy used is monetary policy (changing interest rates). However, in theory, there are a variety of tools to control inflation including: Monetary policy – Higher interest rates reduce demand in the economy, leading to lower economic growth and lower inflation. Control of …
In 2022, the UK economy is struggling with very weak economic growth and one of the highest inflation rates in the OECD. Some of these problems can be attributed to global short-term problems, in particular recovery from Covid lockdowns and rising oil prices which have caused the worst cost-push inflation since the 1970s. However, short-term …
Readers Question: How important is the budget deficit? The budget deficit is the annual amount the government borrow. The government usually financed the budget deficit by selling bonds to the private sector To libertarian and free-market economists, budget deficits are liable to cause significant economic problems – crowding out of the private sector, higher interest …
The latest stats for UK net migration show annual net migration of 239,000 (Q1 2022). This used to be roughly split between EU and non-EU migrants. But, since Brexit, there has been a big change with 437,000 immigrants from Non-Eu and 195,000 from the EU. In Q1 of 2020, there were 437,000 annual immigration from …