Economics in Education
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Rescooped by Bruce Fellowes from Macroeconomics: UK economy Pre-U Economics
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The case against negative interest rates

The case against negative interest rates | Economics in Education | Scoop.it
The only way to ensure that ‘new money’ is put into circulation is to have the government spend it on building houses and upgrading infrastructure

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Graham Watson's curator insight, May 26, 6:06 AM
I often live my life by asking what would Keynes do - at least, in an economic if not a personal sense - and in this case Robert Skidelsky does the same, asking what Keynes would make of negative interest rates. His conclusion is that, unsurprisingly, Keynes believed that there were many limitations to what could be achieved by monetary policy and that, instead of helicopter drops, the government should spend the money, removing the possibility that newly enriched consumers would simply save rather than consume.
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WTO head says leaving EU would cost UK consumers £9bn a year

WTO head says leaving EU would cost UK consumers £9bn a year | Economics in Education | Scoop.it
Roberto Azevedo says Britain would be forced to renegotiate trade deals in move akin to joining WTO from scratch

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Graham Watson's curator insight, May 25, 6:14 PM
It's been international organisation week in the Brexit debate: first, the IMF, now the WTO have weighed in, suggesting that should Britain choose to leave the EU, it will have to renegotiate its trade deals with all of the WTO's 161 members. If this were true, then the represents a considerable cost. I might have to think about changing professions - I'm sure there would be plenty of demand for cogent economists in the midst of all of this.
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EU Referendum: EU exit would hit poor hardest, says David Cameron - BBC News

EU Referendum: EU exit would hit poor hardest, says David Cameron - BBC News | Economics in Education | Scoop.it
The poorest and most vulnerable people in the UK would be hit hardest by the economic consequences of leaving the EU, David Cameron warns.

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Graham Watson's curator insight, May 16, 3:27 AM

More Brexit: this time, the bizarre sight of a Conservative Prime Minister seeming to appeal to core Labour voters by suggesting that the poor have most to lose from Brexit?


Has the world gone mad? Two victories in successive weeks for Yearlings D would suggest that it just might have...

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IMF says Brexit 'bad to very, very bad' - BBC News

IMF says Brexit 'bad to very, very bad' - BBC News | Economics in Education | Scoop.it
The International Monetary Fund chief says a vote by the UK to leave the European Union would have "pretty bad, to very, very bad" consequences.

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Graham Watson's curator insight, May 13, 6:35 AM

The IMF has weighed in regarding Brexit.


The Leave campaign must be on the point of combusting - how dare they!

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Record low rates mean savers are worse off than ever - BBC News

Record low rates mean savers are worse off than ever - BBC News | Economics in Education | Scoop.it
With interest rates for savers at new record lows, new analysis shows that many people relying on their savings income are worse off than ever before.

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Graham Watson's curator insight, May 12, 1:35 AM

A little insight into the distributional effects of low interest rates: it is redistributing money away from savers - typically older people - in favour of borrowers, typically younger people. Thus, it's easy to feel sorry for the Chesterfield pensioners hit by this.


On the other hand, their pension provision is more generous and they are more likely to be homeowners, so you can't view the impact of low interest rates in isolation...

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Brexit isn’t to blame for slowing UK growth. It’s more serious than that

Brexit isn’t to blame for slowing UK growth. It’s more serious than that | Economics in Education | Scoop.it
The US economy is running at a sluggish pace, so there may be pressure for the Bank of England to lower interest rates even further this week
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Cheap drinks and tobacco could make a comeback if Brexit happens

Cheap drinks and tobacco could make a comeback if Brexit happens | Economics in Education | Scoop.it

Cheap drinks and tobacco could make a comeback on to flights if Britain votes for Brexit – but any perks may be wiped out by increased costs and red tape weighing on air travellers.


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Graham Watson's curator insight, May 2, 1:43 AM

Has it come to this? The Telegraph wheels out the 'big guns' to campaign for Brexit. Cheap drinks and tobacco? Pathetic.


And then read the first paragraph: "could", and be "may be wiped out by increased costs and red tape"...

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Looming EU vote posing risk to British economy, Mark Carney says

Looming EU vote posing risk to British economy, Mark Carney says | Economics in Education | Scoop.it
Bank of England governor warns economy is slowing ahead of 23 June, with referendum itself threatening UK growth

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Graham Watson's curator insight, April 28, 5:27 PM
Heady times for the Stockport Express, or bleak times for the Governor of the Bank of England as he reveals that Brexit uncertainty poses a risk to the UK economy. It's a good job that his comments have been picked up by the national press - very few people in Stockport, of my acquaintance, have proved literate or able to communicate coherently - otherwise these particularly percipient remarks might have been missed.
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Beware the OECD and its faulty assumptions on Brexit

Beware the OECD and its faulty assumptions on Brexit | Economics in Education | Scoop.it
It is easy for people working at respectable institutions to get a little comfortable, to assume that the logo on their work will mean it gets a hearing despite serious weaknesses. They know that we all have a limited attention span when it comes to politics and get used to the idea that, by the time the assumptions underlying it all become apparent, the right headlines have already been published.

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Graham Watson's curator insight, April 27, 9:56 AM

A very interesting riposte from Matthew Sinclair in the Telegraph, arguing that the perceived costs of Brexit as depicted by President Obama and the OECS are based on false premises.


In the first place, he argues that the OECD assumes that were Britain to leave the EU there would be full tariffs on UK exports to the EU and vice versa; secondly, he argues that the notion of President Obama, that there's a 'queue' for doing trade deals, implies that they're done one at a time is equally wrong-headed. And he has a point.


However, in response to the latter, any good economist would argue that there's an opportunity cost of trade negotiations, and it must be the case that if the government is negotiating one trade deal then it isn't doing other things that might generate greater welfare gains.

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What kind of trade deal could we get if we left the EU? BBC Newsnight

Wondering which campaign to listen to on trade ahead of the EU Referendum? Chris Cook looks at what kind of trade deal the UK would get if it left the EU

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Graham Watson's curator insight, April 20, 5:21 PM
the BBC have re-uploaded this, after a glitch in the sound, but this is another excellent Newsnight clip that highlights the complexity surrounding Brexit. Just what sort of trade deal will we get? It's unlikely to be as universal as the one we currently have.
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Staying in EU 'best hope' for UK's future say ex-US Treasury secretaries - BBC News

Staying in EU 'best hope' for UK's future say ex-US Treasury secretaries - BBC News | Economics in Education | Scoop.it
Leaving the EU would be a "risky bet" for the UK economy and for London's role as a financial centre, eight former US Treasury Secretaries warn.

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Graham Watson's curator insight, April 20, 5:19 AM

More Brexit with eight former Treasury secretaries arguing in an open letter to the time that a vote 'Leave' would not be in Britain's interests. But why should we be concerned about what they think?


Other thoughts that occur to me include: (a) we've still got 63 days of this 'fun' left (b) I facetiously said that David Beckham's view will be heard at some point in the debate.

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UK Treasury's analysis of Brexit | FT Comment

Lionel Barber and Janan Ganesh discuss the UK Treasury's newly released estimates of what the consequences of leaving the EU would be for the UK economy

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Graham Watson's curator insight, April 20, 2:56 AM
The FT produces some of the most calm, dispassionate analysis of the economic arguments associated with Brexit. Lionel Barber and Janan Ganesh do a good job of reflecting on the Treasury document that George Osborne produced earlier in the week. A blessed relief, looking in particular at the claim that leaving the EU will cost the average household £4,300.
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Reality Check: Would Brexit cost your family £4,300? - BBC News

Reality Check: Would Brexit cost your family £4,300? - BBC News | Economics in Education | Scoop.it
The poster at George Osborne's event said leaving the EU would make your family poorer by £4,300 by 2030. Is that true?

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Graham Watson's curator insight, April 19, 3:36 AM
Excellent BBC article on the Chancellor's claim that Brexit will make every family in the UK £4,300 poorer by 2030. It looks at the claim and points out the GDP per household isn't the same as household income, and that the accuracy of forecasts up to 15 years into the future are necessarily questionable. However, it also points out that the methodology used is broadly sound, so acutally the general tenor of the Chancellor's claims can be validated - and it's not often that I say this...
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What is the real cost of UK's EU membership? BBC News

One thing the campaigns disagree on is the real cost of our membership. So how much money do we put in and how much of it do we get back? I've been taking a closer look at some of the latest figures from the Treasury to try to get to the bottom of it.

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Graham Watson's curator insight, May 25, 6:04 PM
Crikey! Charlie Stayt - of all people - engages in some serious journalism and tries to explain the true cost of UK membership of the EU. It looks at those areas where the UK gets money back from the EU; personally, I'd be happier if Naga Munchetty had covered the story...
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Bank's warning of a Brexit double whammy is very handy for Osborne

Bank's warning of a Brexit double whammy is very handy for Osborne | Economics in Education | Scoop.it
Chancellor will milk the Bank of England’s dire forecasts but the poor picture painted is as much due to UK structural weakness as EU referendum fears

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Graham Watson's curator insight, May 13, 3:25 AM

More Larry Elliott, more Brexit.


This time explaining the convenience of yesterday's announcement and suggesting that it allows the Chancellor to gloss over the UK's structural flaws.


See, it's not just me that's cynical.

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Carney lights blue touch-paper on 'material' referendum risk - BBC News

Carney lights blue touch-paper on 'material' referendum risk - BBC News | Economics in Education | Scoop.it
Mark Carney and the Bank's Monetary Policy Committee have left little room for doubt: "A vote to leave the EU could materially alter the outlook" for the UK economy.

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Graham Watson's curator insight, May 13, 6:39 AM
Kamal Ahmed looks at the impact of Mark Carney's interventions regarding Brexit - I like the use of the term the blue touch-paper...incendiary!
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EU referendum: Frankfurt poised for a Brexit boom - BBC News

EU referendum: Frankfurt poised for a Brexit boom - BBC News | Economics in Education | Scoop.it
Few in the German financial capital say they want Britain to leave the EU, but many are ready to take advantage if it does.

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Graham Watson's curator insight, May 10, 2:33 AM

This BBC article looks at the fact that if Britain does vote to leave the EU, then there's a chance that big players in the City will move, although to where?


Frankfurt is one of the prospective refuges - and there's some talk that a number of major players have already explored this possibility. However, my only observation is that people said this about the creation of the Euro and, if anything, the hand of the City was strengthened. I think it's still the case that the largest trader of Eurobonds is still London...  

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Bank of England meeting could discuss cutting interest rates

Bank of England meeting could discuss cutting interest rates | Economics in Education | Scoop.it
A recent run of bad news on the economy may have chipped away at Mark Carney and other policymakers’ certainty on the path for interest rates
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There is virtually no chance of a rate cut in the near future. However, the last few weeks of economic uncertainty has certainly ruffled some economist's feathers
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EU referendum issues guide: Explore the arguments - BBC News

EU referendum issues guide: Explore the arguments - BBC News | Economics in Education | Scoop.it
Britain goes to the polls on Thursday 23 June to decide whether the UK should stay a member of the European Union. Use this guide to find out the arguments from the Leave and Remain sides on a range of key topics.

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Graham Watson's curator insight, April 29, 9:14 AM
If you can face it, the case for/against Brexit is set out in detail by the BBC: one for insomniacs perhaps... 
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Japan's Abenomics 'dead in the water' after US currency warnings

Japan's Abenomics 'dead in the water' after US currency warnings | Economics in Education | Scoop.it
The Bank of Japan has been forced to retreat from further emergency stimulus after a blizzard of criticism at home and abroad, and warnings that extreme measures may now be doing more harm than good. 

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Graham Watson's curator insight, April 28, 6:00 PM

The Telegraph reports on the 'end of Abenomics', suggesting that events in Japan presage the end of unorthodox monetary policy across the globe. Ambrose Evans-Pritchard points out that the effects of Japanese QE have been counter-intuitive: the value of the yen has risen, deflation remains entrenched and Haruhiko Kuroda, the governor of the Bank of Japan appears to have quite a headache.


The worry is that Japan's endgame is simply flagging up the fate that awaits other developed economies about to experience shrinking populations...

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Barack Obama: Brexit would put UK 'back of the queue' for trade talks

Barack Obama: Brexit would put UK 'back of the queue' for trade talks | Economics in Education | Scoop.it
US president, visiting London, says ‘part of being friends is being honest’ as he lays out perils of leave vote in EU referendum

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Graham Watson's curator insight, April 23, 3:25 AM
Barack Obama's observations on Brexit, cited here in the Guardian. In his address, at the Foreign Office yesterday, he outlined the case for the UK remaining in the EU, arguing that the US is negotiating with the EU and that if Britain left the single market, then it would go to the 'back of the queue'.
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Journey to plastic: A history of money in five objects - BBC News

Journey to plastic: A history of money in five objects - BBC News | Economics in Education | Scoop.it
Ahead of the introduction of plastic £5 notes later this year, BBC News looks at objects used to represent money at the British Museum.

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Graham Watson's curator insight, April 20, 3:00 PM
A lovely clip showing the nature of money over the centuries and perhaps provoking thought about the nature of money - it might help you think about the characteristics and functions of money at a time when the Bank of England are on the point of issuing plastic banknotes.
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British farmers best served by UK staying in EU, says NFU

British farmers best served by UK staying in EU, says NFU | Economics in Education | Scoop.it
Decision by organisation representing farmers in England and Wales comes after report on impacts of Brexit on farming

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City of London would take hit from Brexit, warns Mark Carney

City of London would take hit from Brexit, warns Mark Carney | Economics in Education | Scoop.it
The City of London could lose its position as the world’s leading financial centre in the event of Brexit, Mark Carney, the Bank of England Governor, has warned.

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Graham Watson's curator insight, April 20, 2:42 AM
More on Brexit: Mark Carney told a House of Lords Committee that he expected Brexit to cost the City, and this has proved contentious: some argue that he shouldn't be seen to be adopting a political position, possibly compromising the Bank's independence.