Macroeconomics (AS & A2)
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Housing market 'losing momentum'

Housing market 'losing momentum' | Macroeconomics (AS & A2) | Scoop.it
The UK housing market is showing signs of slowing down, the Nationwide says, with the annual rate of price growth slowing to 9% in October.
Marist Economics's insight:
Even less likely the MPC will raise rates anytime soon now...
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Britain's productivity puzzle: when will it return to pre-slump levels?

Britain's productivity puzzle: when will it return to pre-slump levels? | Macroeconomics (AS & A2) | Scoop.it
Larry Elliott: Recession saw productivity collapse as more people have been employed to produce the same level of output
Marist Economics's insight:

Great illustrated examples of productivity gains and losses and why, until overall productivity increases across the economy, pay is likely to lag behind price inflation

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Supermarkets forced to abandon plans for new stores as shopping habits shift

Supermarkets forced to abandon plans for new stores as shopping habits shift | Macroeconomics (AS & A2) | Scoop.it
Study shows 25% of UK stores having planning permission cancelled or stalled as consumers choose to shop more locallyA quarter of UK supermarkets granted planning permission during the past five years have either been cancelled or mothballed, new...
Marist Economics's insight:
Market analysis for two unrelated markets: HOUSING and SUPERMARKETS. This change in shopping habits forces supermarkets like Tesco to release land they have bought for large store expansion...Good news for housing supply where shortages are leading to local pricing bubbles.
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Recovery in some eurozone crisis economies speeds ahead

Recovery in some eurozone crisis economies speeds ahead | Macroeconomics (AS & A2) | Scoop.it
Ireland, Spain and Italy perform best in Markit's June survey combining activity in manufacturing and servicesRecovery in some of the eurozone's worst hit crisis economies is speeding ahead, according to the latest snapshot of the private sector in...
Marist Economics's insight:
This news will come as some relief to Mario Draghi of European Central Bank. He is hoping Eurozone can lift itself out of stagnant growth and risk of deflation.
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George Osborne rules out answering simple maths question

George Osborne rules out answering simple maths question | Macroeconomics (AS & A2) | Scoop.it
Chancellor boasts of A-level maths but dodges question on eight times table from seven-year-old boy. As chancellor of the exchequer, George Osborne has faced many a tough question relating to figures but that did not stop him dodging a simple...
Marist Economics's insight:
If he was bowled over by a simple maths question then it's a good job George never had to face one of our A Level Economists! This was the forum with Chancellor that was recorded for Sky TV that you entered the competition in 'First News' to win.
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Japan plans to cut corporate tax

Japan plans to cut corporate tax | Macroeconomics (AS & A2) | Scoop.it
Japan has unveiled plans to cut the country's corporate tax to below 30% in several stages over the next few years, as part of the prime minister's plan to revive the economy.
Marist Economics's insight:

Fiscal and Supply side policies - two of the three  'Abe's arrows' (from Prime Minister Abe) to lift Japanese economy out of stagnation and deflation.

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No wage rises until 5% jobless rate

No wage rises until 5% jobless rate | Macroeconomics (AS & A2) | Scoop.it
Average wages may not rise significantly until the unemployment rate has fallen to 5%, a Bank of England policymaker has suggested.
Marist Economics's insight:

Currently wage inflation lagging behind price inflation. Wages +1.3% with CPI +1.5% which means real incomes are falling -0.2%. This report suggests wages unlikely to rise until output gap/spare capacity reduced to a point where unemployment is 5% (currently 6.6% and trend is reducing unemployment). 4-5% is considered to be the point where we might consider it 'full employment' or the natural rate of unemployment.

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George Osborne outlines export lending plan on Brazil trip - Telegraph

George Osborne outlines export lending plan on Brazil trip - Telegraph | Macroeconomics (AS & A2) | Scoop.it
On first day of a trade trip to Brazil, Chancellor George Osborne said he was an “unabashed salesman for the best of British”
Marist Economics's insight:

Benefits of trade: Rebalancing the UK economy towards more export led growth

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UK pay starts to beat inflation: five key charts

UK pay starts to beat inflation: five key charts | Macroeconomics (AS & A2) | Scoop.it
Inflation figures on Tuesday are expected to show the pressure easing on consumers Continue reading...
Marist Economics's insight:
'Real' wage growth at last as labour market tightens whilst price inflation cools. This should mean that standard of living is finally improving for those in work.
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Osborne to target 'full employment'

Osborne to target 'full employment' | Macroeconomics (AS & A2) | Scoop.it
The chancellor says the Conservatives are to target "full employment", saying that unemployment is "never a price worth paying".
Marist Economics's insight:

Full employment is actually not 0% unemployment. Economists generally agree a broad range 3-6% unemployment is considered "full". The pre-recession number was about 5%.

Note the supply-side (with Fiscal overlap as taxation changes) policies to achieve this target- increasing the incentives for householders to work and for businesses to take on more staff in an ever more flexible labour market.

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Housing Market: 17,000 homes bought with Help to Buy

Housing Market: 17,000 homes bought with Help to Buy | Macroeconomics (AS & A2) | Scoop.it

iving demand

Marist Economics's insight:

Driving demand successfully, but risk of government failure if the intervention results in much higher house prices as shortage of supply to meet the new demand.

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Cut Help to Buy, start helping to build, says Ed Balls

Cut Help to Buy, start helping to build, says Ed Balls | Macroeconomics (AS & A2) | Scoop.it
Shadow chancellor calls for restrictions on scheme to prevent unbalanced housing market putting economic recovery at risk The limit of the government's Help to Buy scheme needs to be cut dramatically from its current maximum of £600,000 to under...
Marist Economics's insight:
He's got a point- increasing supply of housing is the key to unlocking affordable house prices, not mortgage subsidies that drive demand higher.
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Economy 'to hit 2008 peak by summer'

Economy 'to hit 2008 peak by summer' | Macroeconomics (AS & A2) | Scoop.it

Via Anthony Beaumont
Marist Economics's insight:

Its taken 5-6 years to get back to where we were before- recession or 'depression'?

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Tweet from @LearningFocus

Tweet from @LearningFocus | Macroeconomics (AS & A2) | Scoop.it
@Marist_Econ one for you: economics take away homework pic.twitter.com/IE1mRWUmY6
Marist Economics's insight:

I can see this being a fun set of revision activities to revisit later in course...Thanks to @LearningFocus

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Five key factors that will decide when Bank of England raises interest rates

Five key factors that will decide when Bank of England raises interest rates | Macroeconomics (AS & A2) | Scoop.it
In a recovery that policymakers find hard to read, rates may, or may not, rise soon, depending on a complex matrix of indicators. By Larry Elliott

Via Geoff Riley
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Geoff Riley's curator insight, August 17, 2014 3:43 AM

This is a really excellent piece from Larry Elliott at the Guardian on some of the factors that the Bank of England will take into account when deciding the moment to move policy interest rates up from their historic low of 0.5%. To think, there are students who might make it through their entire secondary school education without experiencing a change in UK monetary policy interest rates!

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Is deflation such a bad thing?

Is deflation such a bad thing? | Macroeconomics (AS & A2) | Scoop.it
Deflation, or falling prices, is the new economic menace stalking the eurozone. But why is it such a problem?
Marist Economics's insight:
An excellent article to explain the problem with malign deflation
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UK new car sales rise at fastest rate for nine years

UK new car sales rise at fastest rate for nine years | Macroeconomics (AS & A2) | Scoop.it
British consumers exploit cheap car finance deals to buy models with lower running costs as sales rise 10.6% in first half of 2014British consumers are buying new cars at the fastest rate in nine years as they exploit cheap finance deals to buy...
Marist Economics's insight:
Car sales are a good indicator of consumer confidence.
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Bank of England behaving like an unreliable boyfriend, say MPs

Bank of England behaving like an unreliable boyfriend, say MPs | Macroeconomics (AS & A2) | Scoop.it
Treasury committee accuses Bank of giving mixed messages as Carney appears to play down case for early interest rate riseThe Bank of England has been accused by MPs of behaving like an unreliable boyfriend, giving mixed messages on when the first...
Marist Economics's insight:
Mmm does this analogy work? Is Carney really acting like an unreliable boyfriend with confusing signals on so called 'forward guidance'? Possibly...
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Abenomics an uncertain future for most - YouTube

From Tsukiji fish market to rural Gifu, businesses and consumers are worried about rising prices. Prime Minister Shinzo Abe's reforms have reignited investor...
Marist Economics's insight:
Policies to deal with malign deflation...here's a great example of a global economy stimulating itself out of economic stagnation Shinzo Abe is Japan's PM who has developed the 'three arrows' Fiscal, monetary and supply side ...
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Great Evaluation: We’re no longer the world’s largest financial services exporter

Great Evaluation: We’re no longer the world’s largest financial services exporter | Macroeconomics (AS & A2) | Scoop.it
ECONOMIC growth is humming away at an annual rate of nearly 3 per cent, inflation is bang on target and the government’s deficit is falli
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Will restrictions on mortgages cool the housing market? - Telegraph

Will restrictions on mortgages cool the housing market? - Telegraph | Macroeconomics (AS & A2) | Scoop.it
Does Lloyds' mortgage lending cap, the introduction of tough new lending rules and talk of scrapping Help to Buy mark the end of the mania for buying property?

Via Graham Watson
Marist Economics's insight:

Something is needed to stop house prices escalating- tighter regulations is akin to a quarter percentage point rise on base rate. 

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Graham Watson's curator insight, May 24, 2014 3:26 AM

There's been a bit of concern expressed about house price inflation, not least by Mark Carney. However, controlling the housing market is easier said than done, not least because of the asymmetries in the market. This article investigates the likely effects of Lloyd's decision to cap it's mortgage lending, limiting the amount they are going to lend in relation to a borrower's income.

 

But will it take the heat out of the market?

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What is evaluation?

What is evaluation? | Macroeconomics (AS & A2) | Scoop.it
I cant take credit for this fantastic, student friendly explanation of what evaluation is. It was sent to me by David Thresher, Trinity School, Croydon. Certainly worth reading!.
Marist Economics's insight:
This will help you achieve Level 4 or 5 essays. Before making a final judgement, consider the particular circumstances in the case study extract. Then say what decision may depend upon. Finally make a justified conclusion in those circumstances. Subtle but powerful!
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Siemens to add 1,000 UK jobs in wind turbine production

Siemens to add 1,000 UK jobs in wind turbine production | Macroeconomics (AS & A2) | Scoop.it
German company gives boost to offshore wind industry with £160m investment
Marist Economics's insight:

This story has it all: Govt subsidies for producing merit goods (off shore wind farms for renewable energy) and local jobs boost to an area in need of them.

Macro economic benefits as a result of the interaction between Accelerator and Multiplier Effects.

Could you analyse using AD AS macro diagram or a micro S/D merit good and subsidy diagram?

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Britain's trade position worsens after fall in exports

Britain's trade position worsens after fall in exports | Macroeconomics (AS & A2) | Scoop.it
The trade in goods deficit widened to a worse than expected £9.8bn in January from £7.7bn in December
Marist Economics's insight:

As pound strengthens UK loses some competitiveness relative to International. But this is only part of the story that explains the widening of UK trade deficit. Read on...

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Inflation basket drops DVD recorders

Inflation basket drops DVD recorders | Macroeconomics (AS & A2) | Scoop.it

Via Anthony Beaumont
Marist Economics's insight:

All the usual headline grabbers of the changing 'basket of goods' used to measure inflation. Our purchasing habits are reflected in no longer buying items like DVD recorders- what's the substitute good?

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