Readers Question: What did Keynes mean by ‘In the Long Run we are all dead’ – From ‘In the Long Run we are all dead’ For Keynes, the short run was important and due to the instability of the macro economy, government intervention may be necessary to kickstart the economy. Classical economists tend to be …
The UK ‘Public sector Debt’ is now approximately £800 billion (July 2009 – ) Question: Who do we owe it to? People and financial institutions who bought the UK bonds and gilts. These are mainly financial bodies such as pension funds, investment trusts. The irony is that many people in the UK who have private …
Readers Question: When will the Recession end? Sometimes when it comes to making economic predictions, I am happy to stick my neck out. But, when it comes to predicting when we will see a sustained economic recovery, I find it quite difficult at the moment. In theory, the recession will have ended when we return …
Many argue that on simple purchasing power parity, the Chinese currency the Renminbi is undervalued by approximately 30%. This is a source of friction in the US, with firms claiming they lose out to a cheap Chinese currency which can undercut US goods. The Chinese government wish to keep the currency undervalued because: A weaker …
Readers Question: From my studies in economics I have always known that when there is a recession, there is a high tendency for people to borrow at a low interest rate since there is a fall in the mpc due to high unemployment right? In a recession, people tend to borrow less and save more. …
Readers Question: Why do the Government often fail to achieve its main objectives of high economic growth, price stability, and a surplus on the balance of payments. Other objectives worth adding are low unemployment, low government borrowing and maybe stable exchange rate. Looking at the current climate of the UK economy, the government is only …
The US Dollar is often viewed as a safe haven currency. It is still the world’s reserve currency and the thinking is that if the dollar goes bust the rest of the world will be in an even worse situation. Therefore, during the worst of the economic turmoil, the dollar remained relatively strong because investors …
Joking aside (previous post), this year will prove a very competitive year for getting into university. Because of the recession and rising unemployment, there is increased demand for going to university. Especially amongst mature students, doing a degree is seen as a way to avoid the difficult jobs market – hoping conditions will have improved …