For the past few years, it has felt a bit repetitive always asking the same question – why can’t the EU policy makers see unemployment, social exclusion and rising poverty as the real challenge facing Europe? In the current climate it is not bond yields, inflation targets or levels of debt that are the real …
In a follow up to the previous post on the Luddite Fallacy. What would happen if we developed the ‘perfect – all-powerful robot’? Rather than looking at what happens if we start with no technology and increase, what if we start at the other end of the spectrum? Suppose technological advances lead to a robot …
When measuring the largest / best economies, there are different ways of ranking countries. Nominal GDP in $US. This is the simplest measure and shows the actual final market value of GDP produced in the economy. It is useful for comparing levels of international trade. It uses the official exchange rate. GDP in Purchasing Power …
Readers Question: In this era, Inflation had gotten really high specially in countries like Pakistan. Hows will the Inflation level go down ? or will it even let the country develop ? Inflation is one of the several problems that the Pakistan economy faces. The good news is that inflation has been falling in the …
Earlier in the year, many were speculating the Euro was a risk of breaking up. Up step Mario Draghi with his promise to ‘save the Euro whatever it takes’ Under Mario Draghi, the ECB have done two things to help reassure bond markets: Long term refinancing for banks – helping to avoid liquidity crisis in …
Unfortunately, despite the post-Olympic bounce in GDP, other aspects of the UK economy look pretty grim. In manufacturing and industrial output, there has been no real recovery. In manufacturing it is not so much a triple dip recession – more a prolonged double dip. Manufacturing output is 2.1 per cent lower in October 2012 compared …
Source: OBR Dec.2012 Public sector net debt as % of GDP is forecast to start falling in 2016-17. The OBR forecast a decline in public sector net borrowing to 5.1% of GDP in 2012/13. Before increasing to 6.1% of GDP in 2013/14 Part of the decline in the budget deficit 2012/13 can be attributed to …
This graph illustrates some of the different causes of the US budget deficit. Source: CBO estimates 2012 | via Krugman This shows how the deficit has been affected by certain issues. Cyclical factors Cyclical spending and lost tax revenues due to recession. Expansionary fiscal policy (economic recovery measures) Financial intervention to bailout banks and financial …