CLSG Economics: Macroeconomics
32 views | +0 today
Follow
Your new post is loading...
Your new post is loading...
Rescooped by Isha Patel from Macroeconomics
Scoop.it!

Our economy's getting bigger, but not better - Telegraph

Our economy's getting bigger, but not better - Telegraph | CLSG Economics: Macroeconomics | Scoop.it
Self-congratulation over Britain’s growth figures masks a crippling productivity problem

Via SPF Economics, Neil Codd
Isha Patel's insight:

Greater employment is pushing AS up, and from far away this looks like the economy is growing. However, when we analyse productivity data, it becomes clear that the UK is lagging far behind other countries in this sense, and the increase in AS is misleading us to think otherwise. Our manufacturing base is depleted, and with a widening productivity gap, we cannot expect to truly grow economically.

more...
Neil Codd's curator insight, March 2, 2014 3:16 AM

"the British economy’s perennial problem: we consume too much relative to our income, and as a result don’t invest enough in the future. This failing is also reflected in our stubbornly high current account deficit."

Scooped by Isha Patel
Scoop.it!

Carney’s almost promise on rates

Carney’s almost promise on rates | CLSG Economics: Macroeconomics | Scoop.it
The Bank of England has ditched a simple version of forward guidance on the path of interest rates, for a fuzzier more complex version, which some will see as not really guidance at all
Isha Patel's insight:

"the big change between Carney's Bank of England and that of his immediate predecessors is that they refused to talk about what they thought the future path of interest rates would be, whereas he relishes making non-binding, very general statements that interest rates should remain low" With Carney making statements like this for the Bank of England, he better be sure that the spare capacity in our economy will eventually be eliminated. It could go the other way, where Aggregate Demand outstrips Supply and we could face the opposite of the 2008 recession.

more...
No comment yet.
Scooped by Isha Patel
Scoop.it!

Britain faces choice of saving town or country from floods, says agency chief

Britain faces choice of saving town or country from floods, says agency chief | CLSG Economics: Macroeconomics | Scoop.it
Too expensive to defend both urban and rural areas, says Lord Smith, as forecasters warn worse weather to come
Isha Patel's insight:

If Government spending goes up to help prevent flooding, this will increase Aggregate Demand. Could this cause unnecessary inflation? And will the recently devastated towns be able to cope with a price rise?

more...
No comment yet.
Scooped by Isha Patel
Scoop.it!

UK economic growth best since 2007

UK economic growth best since 2007 | CLSG Economics: Macroeconomics | Scoop.it
The UK economy grew 0.7% in the final quarter of 2013 and by 1.9% for the year, the Office for National Statistics says, led by the services sector.
Isha Patel's insight:

"The economic recovery is broadly based with manufacturing growing more than other sectors, and that's evidence that the long-term economic plan is working." - Chancellor George Osborne


"Last week, however, the Bank said it would no longer use employment as a prompt for rate setting, but a wider range of measures." Is this a good idea? I feel that they should stick to their 'forward guidance' policy in order to prevent a boom... because after a boom comes a bust.

more...
No comment yet.
Scooped by Isha Patel
Scoop.it!

UK economic boom could be more of a boomlet

UK economic boom could be more of a boomlet | CLSG Economics: Macroeconomics | Scoop.it
Larry Elliott: Six months ago economic debate was about the risk of triple-dip recession; in six months time it will be about risks of overheating
Isha Patel's insight:

"...It would take a debt default rather than a temporary government shutdown to knock the UK economy off course now." It may be a bit rash to say this even with the UK's GDP improving by 0.7% in the second quarter of the year. We have only just come out of a double-dip recession and already economists are anticipating a fast recovery! However, this economist does conclude that this growth may be a 'boomlet' instead of a steady recovery, and soon we will be worrying about the economy overheating.

more...
No comment yet.
Scooped by Isha Patel
Scoop.it!

Osborne says no house price boom

Osborne says no house price boom | CLSG Economics: Macroeconomics | Scoop.it
Chancellor of the Exchequer George Osborne says there is no housing boom in the UK but adds that authorities are "alert to the risk".
more...
No comment yet.
Scooped by Isha Patel
Scoop.it!

Bank 'must limit house price booms'

Bank 'must limit house price booms' | CLSG Economics: Macroeconomics | Scoop.it
The Bank of England should use its powers to limit house price increases to 5% a year to "take the froth out" of price booms, a surveyors' group says.
Isha Patel's insight:

5% per annum may not be the correct percentage every year; this number will need to be rethought each year as inflation changes. Although it is a good idea and could prevent a housing bubble by reducing risk-taking and therefore limiting the increase in debt.

more...
Neil Codd's comment, September 20, 2013 5:32 PM
Good article Isha and comment. If the Bank does its job properly inflation shouldn't change too much hopefully
Scooped by Isha Patel
Scoop.it!

Peggy Noonan On Steve Jobs And Why Big Companies Die

Peggy Noonan On Steve Jobs And Why Big Companies Die | CLSG Economics: Macroeconomics | Scoop.it
Steve Jobs told us that when the sales people take over the firm starts to die. But it's also the accountants. And it doesn't have to happen. There is another way.
more...
No comment yet.
Scooped by Isha Patel
Scoop.it!

Greece jobless rate hits new record

Greece jobless rate hits new record | CLSG Economics: Macroeconomics | Scoop.it
The jobless rate in Greece reached a record high of 28% in November, according to newly released government figures.
Isha Patel's insight:

The country must increase their productive capacity and increase their output in order to reduce unemployment. The question is how will they do that, and how long will it take?

more...
No comment yet.
Scooped by Isha Patel
Scoop.it!

Job vacancy numbers rising at 15-year high - Telegraph

Job vacancy numbers rising at 15-year high - Telegraph | CLSG Economics: Macroeconomics | Scoop.it
The number of job vacancies is rising at the fastest rate in more than 15 years according to the latest data but skills shortages are becoming more pronounced
Isha Patel's insight:

“There are skills shortages across all sectors. This again underlines just how critical the issue of skills shortages is becoming, as businesses will not be able to contribute to economic growth if they cannot find the skilled workers they need." If the Gov had spent more money on funded training schemes in the last few years, maybe we wouldn't be in this position and unemployment would be below 7% by now.

more...
No comment yet.
Scooped by Isha Patel
Scoop.it!

'Living standards squeeze continues'

'Living standards squeeze continues' | CLSG Economics: Macroeconomics | Scoop.it
Average UK living standards have fallen "dramatically" since the recession and will not recover to pre-crisis levels by the next election, economists say.
Isha Patel's insight:

A classical model of Aggregate Supply and Demand would show that as inflation increases, policies should focus on increasing interest rates because unemployment will sort itself out (due to the 'flexible wage' theory). However, this graph suggests % change in earnings decreased during the recession, not the actual earnings. Is this evidence to prove the Classical model wrong?

more...
No comment yet.
Scooped by Isha Patel
Scoop.it!

US stalemate overshadows IMF meeting

US stalemate overshadows IMF meeting | CLSG Economics: Macroeconomics | Scoop.it
Finance ministers at the IMF and World Bank annual meetings eye warily the political stalemate over the US government's finances.
Isha Patel's insight:
For once, the IMF-World Bank meeting is not exclusively focused on Europe, but primarily the USA. This doesn't suggest that there is nothing to 'fix' in Europe, however, there is more urgency to the ongoing situation in America. Having said this, the IMF seems to be concentrating more on the Federal Reserve's monetary policy instead of what I believe to be the more pressing and recent issue- the government shutdown.
more...
No comment yet.
Scooped by Isha Patel
Scoop.it!

IMF cuts global growth forecast

IMF cuts global growth forecast | CLSG Economics: Macroeconomics | Scoop.it
The International Monetary Fund (IMF) has trimmed its forecast for global economic growth at the same time as lifting its UK growth projection.
Isha Patel's insight:

The consequences of a US Government shutdown...

more...
No comment yet.
Scooped by Isha Patel
Scoop.it!

Bank of England upgrades UK growth forecast - BBC News

Bank of England upgrades UK growth forecast - BBC News | CLSG Economics: Macroeconomics | Scoop.it
Belfast Telegraph Bank of England upgrades UK growth forecast BBC News Two MPC policymakers who had previously suggested an expansion of QE may be required to aid the economy further have now revised their views, according to the minutes.
more...
No comment yet.
Scooped by Isha Patel
Scoop.it!

How quantitative easing in the West screws up the rest of the world

How quantitative easing in the West screws up the rest of the world | CLSG Economics: Macroeconomics | Scoop.it
With Syria and Egypt dominating the headlines, an international crisis of a different kind is going largely unnoticed.
more...
No comment yet.