EconomicsToo

It is always great to hear how students are getting on as they progress through life, moving on to bigger and better things... Many of our students at GIS go on to study at some of the world's best universities and it was wonderful to hear from Jia Yi Lim, who recently moved from Malaysia to the USA and is now settling into life at Harvard University. When in Year 13, Jia Yi was over-the-moon to have received offers from Harvard, Stanford and Cambridge ...having only made 3 applications! Harvard was chosen in the end, but it was certainly a decision which took considerable time, a lot of thought and careful deliberation. In only her first semester at Harvard, Jia Yi is loving life. Having been fortunate enough to have taught her A Level Economics as well as enjoy watching her debate and witnessed her incredible community service work ( Project Smile ), I thought I knew what Jia Yi was capable of. However, her contributions so far at Harvard, as I am sure you'll agree, a

This Guardian article reports on the IMF Fiscal Monitor that has said raising taxes on the richest would have a net positive impact on the economies of wealthy nations. The report states that higher taxes on the wealthy would reduce inequality and would not lead to a slow down in growth...as long as the tax was not excessively progressive, that is! Inequality remains one of the most serious issues the planet faces; some economic theory suggests that a more progressive tax system is the solution. Greater tax would be levied on the rich which is then distributed to lower income earners in the form of goods and services (merit and public); this may be in the form of cheaper healthcare or education. However, progressive taxation has been out of fashion since the 1980's. Why is this the case? Joseph Stiglitz shares some insightful reasons in "The Price of Inequality" (2012) and expresses that 'government capture' by corporate and wealthy interests means that those

The summer provides AS students the perfect opportunity to set themselves apart from other students and to get ahead, making their life that little bit easier for the A2 year. This might be in terms of being prepared for the A2 course but also for the all important university applications process, and the subsequent interviews... One excellent way students will set themselves apart is through reading. Universities say they want to see applicants reading relevant books that show they have an interest in the subject they wish to study. Imagine applying to do an economics degree having not read any books! It is not just about reading anything, it is about what you have read. So, to help you we have tried to provide you with some reading at various levels that should enable you to choose the appropriate books for you this summer. Don't forget, being up to date in terms of news and opinion is also critical so make sure you check out the further reading recommended in

This Guardian article reports that global supplies of salmon have been hit hard by a parasite affecting Atlantic farms meaning there could be as much as a 50% increase in salmon prices. Sea lice are infesting stocks in farms across Scotland and Norway, with rising sea temperatures claimed to be the cause. The consequences of reduced supply will contribute to cost push inflation however many U.K. supermarkets are said to be currently absorbing the initial price rises but some have engaged in 'shrinkflation' whereby consumers will continue to pay prices they are used to but for a smaller quantity.  Whilst the economic consequences are not yet being felt fully and efforts are underway to treat the fish, the short run price of salmon is almost certain to rise very soon. 

Bitcoin is now worth over $1000 USD, a three year high and it actually outperformed all  r eal  currencies over 20016, literally doubling in value. As a cryptocurrency , it could seem a little strange to some how a currency that doesn't actually exist outside of the digital world can perform better than currencies such as the Chinese yuan, the Russian ruble, although it might not be a surprise that it performed better than any currencies called the 'pound' in 2016 (think of the British and Egyptian pounds!). Image source: Bit4coin This excerpt from the WSJ explains bitcoin well, "...it is a digital currency , maintained by a software program that is run on a decentralized network of computers by the so-called “miners” (for a variety of reasons, the largest miners today are all located in China). No one person or entity controls the currency. Every transaction is recorded in a publicly viewable ledger, although user accounts are encrypted. It was conceived as