Earlier in the year the UK had record-breaking inflation with both headline and core inflation remaining well above the government’s target and being worse than forecast. As bad news on inflation kept coming the Bank of England increased interest rates 14 times. Finally, in a narrow vote, the Bank paused to halt rate rises. Is …
America is the biggest economy in the world, it is also one of the richest with average GDP per capita of around $80,000. The richest three American billionaires own more wealth than the poorest 70 countries combined. In the post-war period, US GDP increased by 900% leading to unprecedented levels of income. But, there is …
Readers Question: Is it right that private banks can create 97% of all new money by lending it into existence, and what effect does this have on inflation and the value of money already in existence? Banks can effectively increase the money supply, by lending money. Most money in the modern economy is bank deposits. …
A list of some modern-day protectionist measures, including tariffs, domestic subsidies to exporters, and non-tariff barriers which restrict imports. Types of Protectionism Tariffs – This is a tax on imports. Quotas – This is a physical limit on the quantity of imports Embargoes – This is a total ban on a good, this may be …
House prices are falling at their fastest rate since 2009. With average prices 5% or £14,600 lower than last year. (Both Halifax and Nationwide reporting similar falls) Whilst Property experts are hoping for a soft landing, the market still has to absorb more bad news with a record fall in mortgage approvals and the impact …
Is the Polish Economy Set to Overtake the UK Economy?Watch this video on YouTube In 2000, the average GDP per capita in the UK was over three times that of Poland. But with the UK economy stuck in a trap of low economic growth, forecasts suggest, on current growth trends Poland could overtake the UK …
In the space of 18 months, Bank of England base rates have risen from historical lows to 5%, with more expected. It’s a remarkable turnaround for an economy accustomed to ultra-low borrowing costs – the rapid increase in rates have seen soaring mortgage costs and threatens to push an already struggling economy into recession. Yet …
High interest rates and falling house prices will fundamentally alter both the housing market, and also the economy. The last two house price crashes co-incided with two deep recessions and if prices fall as much as expected, it will worsen an already weak economy. But, it is not all bad news, falling prices could be …