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Misconduct 'has cost UK's banks £53bn over 15 years' | Business | The Guardian

Misconduct 'has cost UK's banks £53bn over 15 years' | Business | The Guardian | National Economy | Scoop.it
Research shows that costs of PPI scandal alone have reached £37bn, four times the bill for the London Olympics
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Plenty of application to support analysis on market failures in the financial markets.
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Subscribe to read

Subscribe to read | National Economy | Scoop.it
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An interesting article that gives examples of how our behavioural preference for the status quo prevents innovation from spreading quickly.
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How low can you go?

How low can you go? | National Economy | Scoop.it
Central banks disagree on the rate of inflation to aim for
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After reading this article explain two reasons why an inflation target that is higher than 0% is desirable.
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Slow economic growth is not the new normal, it's the old norm | Larry Elliott

Slow economic growth is not the new normal, it's the old norm | Larry Elliott | National Economy | Scoop.it
Only after the second world war did average growth top 2%. We must prepare for a fight to benefit from meagre spoils
Aman Kanwar's insight:
Some good contextual data to evaluate the macroeconomic objective of growth.
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The fatal flaw of neoliberalism: it's bad economics

The fatal flaw of neoliberalism: it's bad economics | National Economy | Scoop.it
The long read: Neoliberalism and its usual prescriptions – always more markets, always less government – are in fact a perversion of mainstream economics
Aman Kanwar's insight:

This is a great article to read at the end of your A level course to test your synoptic understanding of all the topics on the course!

What is the key message that you take away?

Use it to conclude an essay or a longer answer.

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Higher taxes can lower inequality without denting economic growth

Higher taxes can lower inequality without denting economic growth | National Economy | Scoop.it
INEQUALITY is one of the big political issues of the 21st century, with many commentators citing it as a significant factor behind the rise of populism. After all, nothing could be more indicative of the triumph of the common man than the elevation of a property billionaire to the American presidency.
Aman Kanwar's insight:
Interesting data to use in support of points that you wish to develop in essays on causes, consequences and policies to do with inequality and growth. Watch out for information on the turning point of the Laffer Curve!
Write a para on the the causal relationship between higher taxes and growth and why they might not dent economic growth.
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Productivity usually bounces back after a recession – why hasn't it?

Productivity usually bounces back after a recession – why hasn't it? | National Economy | Scoop.it

The decade-long flatlining of Britain’s economy has hit living standards – firms have to be weaned off plentiful, low-skill labour to invest in new kit

Aman Kanwar's insight:
This article considers the argument that the plentiful supply of low waged labour can be an explanation for low macroeconomic productivity.
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With Grenfell Tower, we’ve seen what ‘ripping up red tape’ really looks like | George Monbiot

With Grenfell Tower, we’ve seen what ‘ripping up red tape’ really looks like | George Monbiot | National Economy | Scoop.it
Too often safety has been sacrificed to an agenda of deregulation backed by lobbyists: it’s time to put the public interest above corner-cutting and greed
Aman Kanwar's insight:
Red tape is seen to be a bad thing by free market advocates as it is seen to impede market transactions. In LEDCs in particular it is used by bureaucrats and civil servants to extract a rent from market participants and is seen to provide an incentive for corruption.
This article reminds us that red tape does serve a function and reducing it without consideration of this function can produce bad outcomes.
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The higher the inequality, the more likely we are to move away from democracy

The higher the inequality, the more likely we are to move away from democracy | National Economy | Scoop.it
In every political system, the rich tend to hold more power – but the relationship between politics, economics and inequality is complex. To better understand these critical issues, we must look to Big Data
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Interesting data on inequality including a look at the Kuznets curve for the UK over 8 centuries!
Also discusses the causal link between economic and political inequality.

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The six Brexit traps that will defeat Theresa May | Yanis Varoufakis

The six Brexit traps that will defeat Theresa May | Yanis Varoufakis | National Economy | Scoop.it
Two years ago Yanis Varoufakis led Greece’s failed attempt to negotiate with the EU. He explains how the Brussels establishment will do everything to frustrate and outmanoeuvre the British prime minister, using tactics ranging from truth reversal to ‘the Penelope ruse’
Aman Kanwar's insight:
Here is an interesting perspective on how to practice the art of politics!
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Post-Brexit UK economy demands a new type of Robin Hood tax

Post-Brexit UK economy demands a new type of Robin Hood tax | National Economy | Scoop.it
There is a progressive alternative to the Brexiters’ mythical Victorian free-trade golden age. All it needs is a simple regulatory change
Aman Kanwar's insight:
This article explains how a combination of factors contributes to  market failure of the financial : monopoly power of the financial institutions, information gaps and time asymmetry.
Try and write a short para on the failure described in the passage and how the 3 factors contribute to it.
What are the solutions suggested by the article?
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Economic forecasts are hardwired to get things wrong

Economic forecasts are hardwired to get things wrong | National Economy | Scoop.it
Economists have been found guilty of groupthink, guided by political ends and using error-prone gravity modelling. No wonder they crash back down to Earth
Aman Kanwar's insight:

Read this article and write a para on the limitations of economic forecasts.

Here is another article on a similar theme:

https://www.theguardian.com/business/2017/jan/05/chief-economist-of-bank-of-england-admits-errors

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Is the UK the world’s 5th or 9th largest economy?

Is the UK the world’s 5th or 9th largest economy? | National Economy | Scoop.it
The UK has one of the largest economies in the world. But how big? Some say it is the 5th biggest; others say it is the 9th. Which is right? The answer is both. Here’s why. How to create a league t…
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Some "application" and a perspective on using GDP to compare economies.
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UK hit peak wealth position on eve of Brexit vote - ONS | Inequality | The Guardian

UK hit peak wealth position on eve of Brexit vote - ONS | Inequality | The Guardian | National Economy | Scoop.it
High levels of inequality persist with top 10% owning almost half the total wealth, show figures
Aman Kanwar's insight:
Note the data on the wealth Gini and the Income Gini for the UK. Also the figure of £12.8t as an estimate for the next national wealth.
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UK backs up Carillion contractor loans

UK backs up Carillion contractor loans | National Economy | Scoop.it
The British Business Bank will guarantee £100m lending to its contractors, the government says.
Aman Kanwar's insight:
An example of govt intervention to promote competition by supporting small businesses (3.6.1 c on the Edexcel spec). In this case the govt is helping small businesses survive a short term crisis so that they are in existence in the long term to provide competition in the construction sector.
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Brexit: why the UK economy hasn't led to buyer's remorse

Brexit: why the UK economy hasn't led to buyer's remorse | National Economy | Scoop.it
The recession meant to make leave voters regret decision has failed to materialise – with majority of people having moved on
Aman Kanwar's insight:
This article brings a behavioural economics dimension to the current post referendum status on Brexit. Can you explain the behaviour of voters and firms as suggested by the article in a few sentences?
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A hated tax but a fair one

A hated tax but a fair one | National Economy | Scoop.it
NO TAX is popular. But one attracts particular venom. Inheritance tax is routinely seen as the least fair by Britons and Americans. This hostility spans income brackets. Indeed, surveys suggest that opposition to inheritance and estate taxes (one levied on heirs and the other on legacies) is even stronger among the poor than the rich.
Aman Kanwar's insight:
Inheritance tax can be an important policy tool to combat inequality. It can also be seen as denying us the freedom to dispose of the fruits of a lifetime's labour according to our wishes. What do you think?
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Is the growth in living standards worse now than in the Great Depression?

Is the growth in living standards worse now than in the Great Depression? | National Economy | Scoop.it
New data suggests life is getting tougher now for working-age adults than in the lost decade of the 1930s
Aman Kanwar's insight:
Discuss the differences in the economic consequences of the Great Depression and the Great Recession.
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Mergers and acquisitions often disappoint

Mergers and acquisitions often disappoint | National Economy | Scoop.it
WHEN you are the chief executive of a public company, the temptation to opt for a merger or acquisition is great indeed. Many such bosses may get a call every week or so from an investment banker eager to offer the kind of deal that is sure to boost profits.
Plenty of those calls are proving fruitful.
Aman Kanwar's insight:
This article provides a perspective to evaluate mergers from, namely,
the personal incentives that the management of a company face to acquire companies leads to more M&A activity that is not inherently synergistic. The graph provides evidence for this.
After you read the article write a few sentences explaining what these personal incentives are.
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There is a magic money tree…in fact there are two | P2P Foundation

There is a magic money tree…in fact there are two | P2P Foundation | National Economy | Scoop.it

Let us have no more myths about the lack of magic money trees: they do exist – what matters is who owns and controls them. And it should be all of us


Via Nicholas Ripley, Aman Kanwar
Aman Kanwar's insight:

An interesting way to look at how money - or claims on our resources - is created and distributed.

Do you agree with the claim that state magic money can be created free of debt?

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How to Build a Crisis

Banks and corporations are being liberated from the rule of law, and are ripping the world apart. By George Monbiot, published in the Guardian 4th November 2015   What have …
Aman Kanwar's insight:
An interesting article that weighs the pros and cons of self regulation versus laws. You can use the conclusion as an evaluative perspective.
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How conniving carmakers caused the diesel air pollution crisis

How conniving carmakers caused the diesel air pollution crisis | National Economy | Scoop.it
Cheating, dodging rules and heavy lobbying by motor manufacturers fuelled the toxic air the UK is struggling with today
Aman Kanwar's insight:
An example of how asymmetric information and lobbying can lead to government failure in reducing negative externalities.
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UN report lays bare the waste of treating homes as commodities

UN report lays bare the waste of treating homes as commodities | National Economy | Scoop.it
A massive shift of global capital investment has left homes empty and people homeless, argues Leilani Farha, UN special rapporteur for housing
Aman Kanwar's insight:
This article provides an insight into how the financial markets have failed to allocate resources to meet the housing needs of society and so it can reasonably said that they have "failed". Using the information in this article write a paragraph explaining how the financial markets have failed in the housing market.
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A stock market crash is a way off, but this boom will turn to bust | Larry Elliott

A stock market crash is a way off, but this boom will turn to bust | Larry Elliott | National Economy | Scoop.it
Markets are at record highs, but optimism breeds recklessness. The question is how big the bubble will get before it bursts
Aman Kanwar's insight:
Valuing assets is a notoriously difficult business. Price earnings ratios are one way off making a judgement on stock market valuations. This article looks at a longer term price earnings ratio known as CAPE - the cyclically adjusted price earnings ratio. This divides the price of a share by the 10 year moving average of the earnings of the company. The value of the CAPE today has only been reached 3 times in the previous 100 years. Each time there has been a financial market crash soon afterwards!
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Five things economists can do to regain trust

Five things economists can do to regain trust | National Economy | Scoop.it
The Bank of England’s chief economist has admitted errors in its Brexit forecast – how can the profession get out of its crisis?
Aman Kanwar's insight:
This article is a nice advertisement for why it is so important for people to have sufficient economic literacy to be able to make their own judgements!
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