If you are looking for a solid example of a manufacturing industry that experienced deep long term structural contraction then the UK steel sector is a good one to use.
Global steel output has more than doubled in the last four years but what remains of the UK steel industry is battling against rising costs and the challenge of meeting stringent climate change policies. The Financial Times visits Celsa's plant in Cardiff to find out if UK steelmakers still have a viable future. Can British producers take advantage of a rebound in steel output and profits if the European Union economy shows signs of a more durable and stronger recovery?read more...»
The government wants more new homes to be built, so too do hard-pressed home-buyers facing a continued problem of low property affordability. But cautious construction companies are reluctant to press ahead favouring share buy-backs (returning money to their shareholders) and only a limited expansion of new building.read more...»
Are skills shortages holding back the economic recovery? The Financial Times is running a video series looking at the problems businesses are having in recruiting people with technical skills. The apprenticeship programme is expanding but will it be enough to meet the growing gap between demand for and supply of engineers and other specialist jobs in industries surrounding precision engineering, nuclear power and many others?
According to an article in the Financial Times:
"Migrants are filling a fifth of jobs in industries such as oil and gas extraction, aerospace manufacturing and computer, electronic and optical engineering because of a lack of skilled British graduates."read more...»
Year 12 economist Tim Rawlinson considers some of the macroeconomic effects of five years of ultra low policy interest rates set by the Bank of England.read more...»
Our Economics team have been hard at work completing the all-new material for the AS Economics exam coaching & revision workshops this summer. For the pre-easter venues we focus on AS Macroeconomics (see outline programme below). At the post-easter venues we incorporate core micro and macro topics into one day.
Students attending these workshops will also be given a copy of Geoff Riley's new AS Macroeconomics Revision Guide.
Some screenshots of the AS Macro workshop booklet are provided below.
How to book places (subject to availability)
Email Janet Cahill with your confirmed numbers , or
Order online (including private individual students / groups), orread more...»
The 2014 Budget will take place on Wednesday 19 March. Here is a general knowledge quiz on the Budget and the current state of the UK economy that you might want to take to test your understanding! Good luck! We will be covering the budget speech and the economic background to it extensively here on the Tutor2u blog.read more...»
Here is a revealing quote from a special study published in March 2014
"Simply put, too much of the city’s essential infrastructure remains stuck in the 20th Century—a problem for a city positioning itself to compete with other global cities in today’s 21st Century economy."
Which city do you think this report was referring to?read more...»
There is plenty of evidence for the assertion that increases in indirect tax have led to the burden of of those regressive 'stealth taxes' falling on lower income earners. However, Norman Lamont, former Chancellor of the Exchequer, was on Newsnight on Thursday night to discuss the direct tax effects of income tax He was arguing for the threshold at which the higher tax rate of 40% kicks in to be raised.read more...»
Money, so it is said, makes the world go around. And to some extent it does. But it's not one of the functions of money that I teach in my lessons. The nature of money is fascinating and there are plenty of books that look at the subject, not least Philip Coggan's "Paper Promises: Money. Debt and the New World Order" or Felix Martin's "Money: The Unauthorised Biography". If we start from the premise that money is "anything generally accepted in payment of a debt" then this leads us into interesting territory.read more...»
For years the government has tried to lift research and development spending as a share of national income - but seemingly to no avail. The latest data finds that the UK is spending less on R&D than any other EU country. What might this mean for the supply-side competitiveness of the economy?
The data finds thatread more...»
Test your UK economy awareness and general knowledge with this fifteen question quiz! Good luck!read more...»
Singapore is ranked as the most expensive city in the world to live in, according to new research on living costs published by the Economist Intelligence Unit. It is simply a coincidence that the Tutor2u team have been out in Singapore this week delivering their TBBLE, WOW Economics and Engaged Learner CPD events!
One of the main reasons for Singapore climbing to the summit is the staggering cost of owning a licence to use a vehicle. Purchasing a “Certificate of Entitlement” for a standard 1.6-litre engine can exceed 80,000 Singapore dollars ($63,300)! The strong currency is also an important factor together with prices for utilities.read more...»
Here’s a great topic for an economics debate. National income is still lower than before the financial crash. We have a ‘cost of living crisis’. Yet it’s possible to argue that life is better now than it was in 2005. How can that point be made without being laughed out of the room?read more...»
I am setting my AS macro students an essay this week evaluating the economic effects of five years of ultra-low monetary policy interest rates. Tom White blogged about this a day or so ago (click here) linking to an excellent article in the Guardian. It is a great way for students to deepen and broaden their understanding and awareness of recent developments in the UK economy.
Teaching colleagues covering monetary policy might want to use the data charts on interest rates contained in the PowerPoint file shown below.read more...»
There’s been lots of media coverage of a recent anniversary: it was five years ago in March 2009 that the Bank of England took the dramatic step of cutting interest rates to their lowest level in more 300 years. And there they have stayed - with some predicting they will stay low for a while longer yet.
How about a quick bit of analysis (why the Bank took the move) and then some evaluation? I’m suggesting an evaluation based on a recent Guardian article. Has it been a good move? Well – it depends – on who you are, for a start.read more...»
Mind the Gap! Evan Davis has produced two superb programmes on the regional imbalances in the UK economy. In the first he focuses on the agglomeration / network economies of scale that help to explain the skew in business investment towards the capital. In the second he looks at which cities elsewhere in the UK might be drivers of renewed growth of incomes, investment and growth! Here are the links:
Mind The Gap Episode 1 - click here
Mind The Gap Episode 2 - click hereread more...»
Our new 44-page, full-colour printed revision guide is designed to support students preparing for their AS Economics exams on macroeconomics. The guide provides comprehensive coverage of the core macroeconomic topics for AS Economics, grouping them into the following areas:read more...»
Here is a revision presentation for an AS Macro topic - economic growthread more...»
Here is a revision presentation for an AS Macro topic - the multiplier effect, the accelerator effect and Keynesian economicsread more...»
Here is a revision presentation for an AS Macro topic - the economic cycleread more...»
Here is a revision presentation for an AS Macro topic - macroeconomic equilibriumread more...»
Most of the commentary on the UK’s economic recovery focuses on consumers. Are they taking on too much debt again to finance their spending? Is there a bubble in house prices, as people get excited about bricks and mortar again? Certainly, in terms of its sheer size, spending by consumers is by far the biggest component of GDP, making up around 60 per cent of total domestic expenditure.read more...»
In Germany the government has reluctantly agreed to introduce a minimum wage of €8.50 (£6.98) per hour. Angela Merkel's conservative Christian Democratic Union party is opposed to the idea, but need to make concessions in coalition negotiations with centre-left parties such as the Social Democrats, who have campaigned for a national minimum wage.read more...»
Here is a revision presentation for an AS Macro topic - aggregate supplyread more...»
In this independent research assignment, Year 12 Economist Doug Feagin considers some of the factors influencing the macroeconomic performance of Mexico - a fascinating country and one of the MINT cluster of countries discussed by Jim O'Neill in his recent programmes for the BBC.read more...»
Here is a revision presentation for an AS Macro topic - aggregate demandread more...»
Here is a revision presentation for an AS Macro topic - measuring national income and the standard of livingread more...»
Here is a revision presentation for an AS Macro topic - the circular flow and macroeconomic objectivesread more...»
To follow up on Hugh Pym's video which explains the difference between government debt and government deficit, here is another fantastic resource. Definitions, data and descriptions of debt and deficit, chapter and verse on the structural deficit and on government borrowing. It looks like the perfect lesson resource - as its title says, all you need to know.
The BBC's Hugh Pym helps us to avoid a common exam mistake - namely confusing debt with deficit.read more...»
Here is an updated revision presentation on aspects of exam technique for the Unit 2 AS Macro paperread more...»
A selection of video resources for students and teachers interested in Keynesian economicsread more...»
A selection of video resources for students and teachers interested in Keynesian economicsread more...»
As Japan continues to push forward with Abenomics, monetary stimulus tapers off in the USA and and a halt elsewhere in the world alongside still timid business and consumer confidence, deflation becomes a serious risk for the advanced economies in the short term future.
The area with the biggest concerns without doubt is the Eurozone with deflation pushing up the real value of still cripplingly large debt levels, worryingly that analysts, forecasters and Eurozone representatives are finding difficult to objectively quantify. What the world really needs to see is business confidence and spending to pick up in advanced economies, fuelling positive inflationary pressure dampening the impact of exported deflation from Japan as a result of Abenomics. The Euro Area have yet another worry to add to their ever growing sickness list, worth watching very closely as to what happens in the coming months. This video explains further:read more...»
Robert Peston looks at the astonishing investment in urban infrastructure in China in recent years - 30 new airports, 26,000 miles of motorways and a new skyscraper every five days have been built in China in the last five years - required viewing for those interested in a key aspect of Chinese economic growth and development. Link to How China Ruled the World (BBC World)read more...»
He might have only had his feet under the Governor's desk for 8 months but BOE Governor Carney has announced changes to the role of the MPC for a second time as forward guidance has been overhauled.
Forward Guidance Mark II began yesterday as the Forward Guidance Mark I didn't really go as planned, approaching the 7% threshold for unemployment way too quickly for the BoE's comfort. The following video clips discuss some of the issues from yesterday's announcement. Big debate about whether the new Forward Guidance is more fuzzy than it is forward.read more...»
David Smith's weekly column in the Sunday Times yesterday is worth getting hold of, to study the conundrum around stagnant productivity and rising employment. He uses data from the ONS to look at average weekly real wages, which started falling in 2008 and are still falling now, to consider whether this year will show a turnaround in real incomes.read more...»
Cost benefit analysis, economies of scale, energy economics, regional development, economic growth, competitiveness ... there is a veritable a tidal wave of applied economics in this article from the Guardian on plans for Tidal Lagoon Power.
Here is a resource (in editable word format) that I use when introducing the topic of unemployment - I find it works for students to get a sense of the numbers for employment and unemployment when we get onto the policy issues. The resource has the answers at the back!
Hope this might prove a useful classroom resource!
Here are ten questions for students wanting to check their understanding on the multiplier and the acceleratorread more...»
Here are ten questions for students wanting to check their understanding on exchange ratesread more...»
Here are ten questions for students wanting to check their understanding on the balance of paymentsread more...»
Here are ten questions for students wanting to check their understanding on inflation and deflationread more...»
Here are ten questions for students wanting to check their understanding on GDP and the circular flow - before you take the quiz, check out our revision presentation first!read more...»
In this short interview from the Financial Times, John Authers discusses with Roger Bootle, managing director of Capital Economics about the sources of the resurgence in growth in the UK economy. Bootle argues that there is little sign of economic re-balancing, consumption is the main driver of recovery and net exports are subtracting from growth at the moment.
The current account deficit is widening - Bootle find this a deeply depressing shift and hints that the UK economy remains heavily dependent on exporting to weak-growing European markets.read more...»
Here are ten questions for students wanting to check their understanding on economic growthread more...»
New data on the UK economy shows another quarter of above trend growth. Here is an updated six chart presentation on the economic cycle that might be useful for teaching macro in the classroom. Download as a powerpoint fileread more...»
Here are ten questions for students wanting to check their understanding on managing the economyread more...»
Here is a quick revision quiz on the economics of unemployment! Good luck!read more...»