EconomicsToo

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 ...

Tasked with a thought experiment known a ' dissoi logoi ', a classical idea in rhetoric where one considers an issue from the perspective of an opponent's argument to better understand it, Year 13 economist, Zhou Chen has produced this piece (originally on his  blog ).  Following a discussion on how ' sovereignty ' was a major reason behind many 'Leave' votes and reviewing this article  on sovereignty being 'reclaimed' but then the UK ignoring Parliament, Zhou Chen has produced the following on his blog: Brexit negotiations kept secret from Parliament does reclaim sovereignty from Brussels First and foremost, I acknowledge this is a strange and unpopular view but seemed like an interesting mental exercise to pursue. The idea that, as announced by Secretary of State for Leaving the EU David Davis, “Until Article 50 is initiated and Britain officially begins the process of leaving the European Union, no news on Brexit negotiatio...

The pound sterling has had its worst four day performance since June 2016's Brexit vote, having fallen to $1.23 and the expectations from the Bank of England are for it to fall further in the next few weeks. There has been a 19% drop since the referendum. Source: http://www.bbc.com/news/business-37617813 Brexit is clearly responsible for much of this fall. Whilst the falling pound against the dollar has actually been positive for the FTSE 100 as a large percentage of listed companies earn revenue in US dollars and are seeing an increase in their value, what is actually causing this to happen and what will the consequences be? How is Brexit actually causing the fall in value? The value of the pound is seen a judgement on the future growth potential of the UK economy in comparison with the future growth potential of other currencies and economies. So this depreciation does mean that the UK is seen as having less potential growth and that is why demand f...

The impact of the introduction of the 5p charge on plastic bags in English supermarkets saw their usage fall from 7 billion to just over 500 million. This is obviously as massive drop and the main reason for the charge being introduced, so many would argue it has been a success. Image source:  http://greenmelocally.com/california-plastic-bag-ban/ Why reduce the usage of plastic bags? The main reason is down to the negative externalities of plastic bag usage. This page on the Ocean Crusaders website lists many of the key issues caused by discarded plastic bags to the oceans alone, including 1 million seabirds dying a year, ingestion by huge numbers of fish and that there is believed to be 46,000 pieces of discarded plastic in every square mile of ocean.   However, this Telegraph article  by Peter Spence argues that plastic bags make up only a tiny percentage, between 0.1 and 1%, of total rubbish, although about 2% of litter on beaches. Spence reports that the ...