A significant 5 year rail infrastructure investment plan adds weight to the belief that capital spending will be a major driver of the next phase of the UK economic recovery. Network Rail is state owned, a not-for-profit business whose commercial returns are reinvested into the rail network..
Smaller families, improved knowledge about nutrition and hygiene, and a cleaner environment with better housing, less overcrowding and a reduction in toxic heavy industry – all of these things have contributed to the spectacular increase in the height of the average young man in Britain over the past one hundred.
A good article in The Economist recently, arguing that firms may be cramming markets in order to keep rivals out. Raising barriers to entry serves to reduce the levels of competition in markets, or makes them less ‘contestable’..
England's odds of winning the World Cup are about 30-1 - which reflects a rather low level of confidence that we have a realistic chance. However, the Governor of the Bank of England seems to think that a safer bet would be to back the recovery of the UK economy,.
The UK’s official inflation benchmark, the Consumer Prices Index, slid to 1.7 per cent in February – the lowest for more than four years. What are some of the main factors causing inflation to fall below target?.
Britain’s current account deficit for 2013 as a whole (4.4% of GDP) was greater than in any other developed economy and the widening current account gap is raising fresh concerns about whether the UK's economic recovery is balanced and sustainable..
Mr Nelson's insight:
Note the concerns about our high deficit (4.4% of GDP). What is most likely to happen to interest rates?
One type of market failure that contributes to inequality and unemployment is the geographical immobility of labour. If the labour market really ‘cleared’ effectively, wages would equalise across the economy. Workers would drift away from regions with low wages and/or high unemployment towards areas where wages were higher and labour.