A look at the economic impact of a fall in the exchange rate (termed depreciation or devaluation) A fall in the exchange rate is known as a depreciation in the exchange rate (or devaluation in a fixed exchange rate system). It means the currency is worth less compared to other countries. When there is a …
New statistics from the ONS, show that there are large disparities in wealth within the UK. In 2010/12, aggregate total wealth of all private households in Great Britain was £9.5 trillion, (increasing from £9.0 trillion in 2008-10. Some highlights from the report The wealthiest 10% of households owned 44% of total aggregate household wealth. The …
Distribution of income refers to the relative incomes that people have within an economy. For example, in the UK the poorest 10% of people have roughly only 2.5% of the nations total income. The richest 10% have approximately 35%. This suggests there is a degree of relative poverty because the richest have a bigger % …
Readers Question: Explain what is meant by a balance of payments disequilibrium? The Balance of Payments is comprised of two main components: The Current Account (trade in goods, services + transfer payments and investment incomes) The Financial Account (used to be called capital account; this is capital flows such as foreign direct investment) If the …
A mansion tax (or property tax) would be an annual progressive charged that would be paid by homeowners. It is effectively a tax on housing wealth. The Labour party has suggested implementing a property tax on homes worth over £2 million. Exact details have not been confirmed, but the suggestion is that it will be …
The Genuine Progress Indicator (GPI) is an attempt to measure the real increase in economic welfare. The GPI measures the improvement in economic welfare – costs associated with growth. It is measured using the formula GPI = A + B – C – D + I A is income weighted private consumption B is value …