Capital Flows – Benefits and Disdavantages
A look at the benefits and costs of capital flows.
Kant, Keynes and Kierkegaard
I was amused to see in Oxford Blackwells my new economics book in between the great philosophers Immanuel Kant and Søren Kierkegaard. I’ve always fancied myself as something of a philosopher. But when I studied PPE at Oxford University, I was hopeless at western philosophy. I couldn’t read a page of Kant for love nor …
What is the inflation target?
An inflation target means the Central Bank has the objective to use monetary policy in order to keep inflation close to an agreed level (e.g. 2%) If inflation is forecast to rise above the target, they are likely to increase interest rates to moderate demand and slow down inflationary pressures. If the Central Bank is …
Should the government build houses or leave it to the free-market?
Readers Question: should the government build houses itself, encourage the private sector to build more houses, or play no part in the housing market at all? (justify your answer) Arguments for Government Building Houses House prices are currently too high due to a shortage of supply. If the government increase the supply it will help …
How is OPEC able to fix the price of oil?
Readers Question: The Oil Petroleum and Exporting Countries (OPEC) comprise the main oil procedures in the world. With the aid of diagrams show how OPEC is able to fix the price of oil on the world markets and comment on its recent activity in this area. Suggest what would happen if OPEC kept increasing prices …
Balanced and unbalanced economic growth
What do we mean by balanced economic growth? Also, is it important for an economy to promote a balanced approach to growth? A balanced economy suggests that economic growth is sustainable in the long-term, and the economy is also growing across different sectors – and not focused on one particular industry or area. A balanced …
Should I park in an illegal parking space and risk a fine?
Question number 2 from What would Keynes do? – Should I park in an illegal parking space and risk a fine? Key economist – Gary Becker “I calculated the likelihood of getting a ticket, the size of the penalty, and the cost of putting the car in a lot. I decided it paid to take the …
Question: Why Has Demand for Train Travel Increased Despite Higher Prices?
Since the 1980s, UK train travel has increased sharply. Despite above-inflation price increases, demand for travel by train continues to grow. This is due to several factors including – economic growth, congestion on roads, higher rents in city centres, causing more demand for commuting. Three interesting graphs from Social Trends vol 40. Source: Office of …