When displaying time series data, it often makes sense to use index numbers. Index numbers are a simple way of making it easier to compare numbers over a period of time. Index numbers measure relative changes in the price of a sum of representative data. For example, the FTSE-100 is an index displaying the average …
The UK credit rating is a measure of the UK government’s credit worthiness on the level of government borrowing. AAA rating implies that the government is liable to honour its debts and repay bonds and gilts in full. A- would indicate a small chance of default. BBB rating implies the investment is speculative with a …
Readers Question: Is it possible the phenomenon to have a relationship between GDP and house prices where an increase of the mean GDP to lead to decreased house prices? Yes, An interesting phenomena is that UK house prices have shown an increase during 2009 – despite a prolonged recession. Typically, in a recession, you would …
Readers Question: Is Real GDP per head a better indicator of living standards compared to growth of Real GDP? Why? Real GDP per capita shows the average income of a country. If Liechtenstein has 0% growth of Real GDP in 2008, average incomes will reamin $118,000. A country like India may have GDP per head …
Will the Pension Triple Lock Bankrupt Britain?Watch this video on YouTube In 1909, the UK provided the first state pension to those over 70. At the time, the average life expectancy was just 52. Since then, the average life expectancy has increased to over 81. But, the pension age today is 66. It means the …
House Prices – What Happens Next?Watch this video on YouTube Here is a graph that often surprises me. If we adjust UK house prices for inflation, they are the same level as 2003. In other words, if you bought a house in 2003, ignore the effects of inflation, then the average house hasn’t increased in …
UK Households Set to be POORER by 2030Watch this video on YouTube After 15 years of stagnating living standards, a new report suggests that after housing costs, real disposable income are likely to continue falling for the next five years. The decline will be felt by all income groups, but those on benefits, poorer households, …
How to Deal with AI – Universal Basic IncomeWatch this video on YouTube AI is coming for your job. It doesn’t matter if you are taxi driver, accountant or god forbid writer and podcaster, AI and chat bots are going to be able to do it better. Goldman Sachs forecast 300 million jobs could be …