To what extent can the government help boost domestic industry and manufacturing? In recent weeks, several politicians have talked about their desire to help UK manufacturing and boost industrial production. It may be a noble endeavour to try and boost UK industry and rebalance the economy away from financial services to manufacturing. But, how practical …
Readers Question: I wanted to ask if it is necessary to include some facts, figures or information about what is really going on in the world. I am not really sure about it. I’ve seen my friends include details like the National Income figure of some countries or mention recession and what is really going …
The UK economy has experienced the most prolonged decline in real GDP on record. GDP is still lower than before the start of the great recession in 2008. This unprecedented recession has been prolonged – despite a sharp depreciation in the Pound, and a raft of unconventional monetary policies. However, recent statistics suggest there are …
Readers Question: my question is If the UK. had joined the Euro back when it first started would the UK. have benefited like Germany or would we be in the same situation as Greece, Italy, and Spain? If the UK had joined the Euro from the start in 1999, the UK economy would definitely have …
Economists generally agree that a high inflation rate has various economic costs and therefore, we should use economic policy to keep inflation low. Since the mid 1980s, governments have increasingly set strict inflation targets, e.g. ECB inflation of less than 2%. The Bank of England targeting inflation of 2% +/-1. However, some economists argue that …
Question: re: article on the great recession. How did the money supply affect the credit crunch and recession? Firstly, we can look at the statistics for the money supply growth rate in the UK. Source: Bank of England This shows strong growth in the broad money supply in the years leading up to the credit …
Back in February 2007, I wrote an essay – Evaluate the effectiveness of the MPC in controlling inflation. The last line was: MPC have done a good job so far. However the real test may come when there is a rise in structural inflation or global instability. Given the knowledge of the past five years, …
Readers Question: I am also interested in Marxist economics and they seem to say the 2007-2008 crisis was a result of over-financialisation of the economy, and that investors/owners could not squeeze surplus out of other sectors in the economy as they once could. Financialisation of an economy refers to the situation where the finance sector …