http://www.tutor2u.net/blog/index.php/economics/ en tutor2u.net Copyright 2012 2012-02-11T19:04:45+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/stephanie-flanders-explains-quantitative-easing-in-60-seconds http://www.tutor2u.net/blog/index.php/economics/comments/stephanie-flanders-explains-quantitative-easing-in-60-seconds#When:22:22:21Z This has to be amongst the best 60 seconds of Economics you’ll ever see on television.  The superb Stephanie Flanders takes a leaf out of the RSA playbook to explain the basic theory behind quantitative easing.  Wonderful!! A2 Macro, AS Macro, Financial Markets, Global Economy, Credit Crunch, Government Intervention, Macroeconomic Policies, Monetary Policy, UK Economy, 2012-02-09T22:22:21+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-the-economic-disaster-of-youth-unemployment http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-the-economic-disaster-of-youth-unemployment#When:16:45:27Z The official figures show that there are now more than one million young people counted as unemployed in the UK although the precise scale of the jobless crisis is difficult to measure accurately. Nonetheless, it represents a fundamental economic, social and political problem and one that policy makers must address. In this video report from Al Jazeerah, Lawrence Lee visits Leeds to find a well qualified nineteen year old with good qualifications but who cannot afford to go to university and is finding it tough to win a place in the police force - his main ambition. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Market Failure, Factor Immobility, Poverty and Inequality, UK Economy, Unemployment, 2012-01-28T16:45:27+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-can-the-uk-computer-games-industry-grow http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-can-the-uk-computer-games-industry-grow#When:22:17:37Z Britain is one of the world’s biggest exporters of creative products - from live TV shows and music to books, arts, architecture and films the economy has built up an enviable global reputation for excellence and a growing trade surplus to aid our balance of payments. Computer games falls squarely into this category but, according to TIGA - the trade association representing the UK’s games industry - unless there is renewed government support, the future of this sector is at risk. TIGA claims that the British games industry is suffering a significant ‘brain drain’ as talented programmers and artists leave the country to work abroad. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, A2 Micro, AS Micro, Business Economics, Economic Growth, Economics of Technology, GCSE Economics, Government Intervention, Subsidies, Macroeconomic Policies, Supply-side policies, Market Failure, Factor Immobility, Market Equilibrium and Price, Nature of Demand, Nature of Supply, Teaching of Economics, UK Economy, Regional Economics, Unemployment, 2012-01-24T22:17:37+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-exporting-to-the-booming-chinese-economy http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-exporting-to-the-booming-chinese-economy#When:14:47:32Z Before you read this blog please have a look at another blog written by our good friend Mark Johnston from New Zealand. Students of China and the US economy will find it fascinating! There are good grounds for no longer calling China an emerging economy - it has arrived! The multiple significance of the rapidly-growing Chinese economy is plain for all to see but for Britain, only a small percentage of our exports of goods and services go there and this must change if Britain is to fully engage with and benefit from the rising might of the Chinese consumer. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Balance of Payments, Emerging Economies, China Economy, Business Economics, Cycles and Shocks, Aggregate Demand, Economic Growth, Global Economy, International Trade, Macroeconomic Policies, Trade Policies, Manufacturing Industry, UK Economy, 2012-01-23T14:47:32+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/video-resources-on-rising-inequality http://www.tutor2u.net/blog/index.php/economics/comments/video-resources-on-rising-inequality#When:10:24:14Z In this blog entry we will be bringing together some short video resources that might be useful when teaching and studying the economics of inequality. Please do add some more resources using the comment box at the bottom and we can add them to the listing. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 2, A2 Micro, AS Micro, Government Intervention, Market Failure, Poverty and Inequality, Standard of Living, Teaching of Economics, UK Economy, Regional Economics, 2012-01-23T10:24:14+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-living-below-the-breadline http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-living-below-the-breadline#When:00:12:49Z This article on the appalling depth of workless households in Liverpool is a reminder of the multiple aspects of relative poverty and economic/social exclusion. The causes of unemployment are complex - many are structural - but it is hard to draw much if any optimism from reading this article. By some estimates over one third of households in Liverpool have no one in work and second and third generation unemployment is not uncommon. This is a must article for students to read if they want a better awareness of the human cost of non-employment. Read: Below the breadline on Liverpool’s workless estates AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Labour Market, Macroeconomic Policies, Supply-side policies, Market Failure, Factor Immobility, Poverty and Inequality, Teaching of Economics, UK Economy, Regional Economics, Unemployment, 2012-01-20T00:12:49+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-the-economics-of-solar-subsidies http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-the-economics-of-solar-subsidies#When:22:15:53Z This blog provides a link to a new prezi presentation on the economics of solar subsidies - I have been using it as part of my teaching on aspects of environmental economics for Unit 3 AQA but it might also be useful for unit 1 market failure. I have kept theoretical diagrams out of it and plan to build up relevant analytical concepts such as economies of scale, consumer subsidies, economic and social welfare, government failure et al on a normal whiteboard rather than embed them into the Prezi. I hope it is useful. Follow the tags at the bottom of the blog entry for more recent articles on solar subsidies such as feed-in-tariffs and other environmental economic resources. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, A2 Micro, AS Micro, Cost Benefit Analysis, Environmental Economics, European Economy, Government Intervention, Subsidies, Market Failure, Merit & De-Merit Goods, Market Equilibrium and Price, Nature of Demand, Nature of Supply, Price Mechanism in Action, Teaching of Economics, UK Economy, 2012-01-18T22:15:53+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/inflation-whats-up-whats-down-and-whats-going-to-happen-next http://www.tutor2u.net/blog/index.php/economics/comments/inflation-whats-up-whats-down-and-whats-going-to-happen-next#When:21:04:00Z Just as the Monetary Policy Committee have been saying for a while, inflation is starting to fall back towards their target. The fall to 4.2% in December is rather sharper than expected, and is the biggest monthly fall since April 2009. With further falls almost certain in the next few months as the VAT rise and energy price hikes roll out of the 12-month figures, analysts have commented today that this will leave the opportunity for the MPC to inject further rounds of QE into the economy with less fear of triggering too much demand-pull inflation. A2 Macro, AS Macro, Inflation and Deflation, Macroeconomic Policies, UK Economy, 2012-01-17T21:04:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/indicators-of-financial-stability http://www.tutor2u.net/blog/index.php/economics/comments/indicators-of-financial-stability#When:20:52:45Z This mornng the Bank of England published a letter from the Governor to Andrew Tyrie MP, Chairman of the Treasury Select Committee which is discussing financial stability policy. The letter provides some simple indicators that might be used to help monitor financial stability. A2 Macro, Macroeconomic Policies, UK Economy, 2012-01-17T20:52:45+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-videos-on-productivity http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-videos-on-productivity#When:08:46:56Z Here is a selection of short video clips that might be useful when teaching the economics of productivity as part of the AS macro course. I often start with the “Fast Hands” video clip (one minute only) because it raises all kinds of issues about division of labour and the quality of life of people who do these tasks. And the short 25 second clip on the world’s fastest hand is guaranteed to make a mark! If you have some other videos on productivity to share please leave a link in our comment slot at the bottom of the blog. The Guardian business web site has this excellent photo stream on life inside the Nissan car factory. Follow them on Twitter AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Business Economics, Economic Growth, Macroeconomic Policies, Supply-side policies, UK Economy, 2012-01-17T08:46:56+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-france-loses-her-aaa-credit-rating http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-france-loses-her-aaa-credit-rating#When:14:36:24Z It is perhaps a moment of more political than economic significance, but on Friday 13th January 2012 Standard and Poors, a leading credit rating agency announced that France was losing her triple A (AAA) credit rating for sovereign debt. It was part of a larger downgrading of government bonds among a sizeable chunk of Euro Zone countries, the argument being that plans to achieve deficit reduction lacked credibility. France was downgraded, S&P also lowered the long-term ratings on Austria, Malta, Slovakia, and Slovenia, by one notch. The rating levels for Cyprus, Italy, Portugal and Spain were dropped two notches. Here is a brief Channel 4 report on the news and some other links to the story. Only four Euro Zone countries now have an AAA rating. Do you know who they are? AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, European Economy, The Euro, Global Economy, Credit Crunch, Teaching of Economics, UK Economy, 2012-01-15T14:36:24+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-time-to-re-boot-the-british-economy http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-time-to-re-boot-the-british-economy#When:21:52:49Z This special blog in the Guardian from Professor Danny Quah of the London School of Economics is superb for Unit 4 students taking their papers in June 2012. in “The UK and the eurozone in the shifting global economy” Professor Quah focuses on many of the underlying difficulties in the UK economy. Digging deeper inside the trade data he finds that, focusing on the UK’s 50 largest trading partners in 2009: 56% of our exports go to the 10 slowest-growing economies in that group. We are missing many opportunities to fully embrace trade and investment with faster-growth countries notably in Africa and Asia. A note for your diaries if you are within reach of London on Monday 23rd January. Martin Wolf from the FT is speaking on The State of the Global Economy in 2012 - an event not to be missed for fans of his writing and insight. He is speaking along with Jean Michel Severino, nspector general at the French Ministry of Finance. Here are the details. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Teaching of Economics, UK Economy, 2012-01-14T21:52:49+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/newsnight-on-rebalancing-the-uk-economy http://www.tutor2u.net/blog/index.php/economics/comments/newsnight-on-rebalancing-the-uk-economy#When:05:11:19Z Last night’s edition of Newsnight should be required viewing for all AS and A level economists - and it is a huge shame that it is only available on i-player for another 7 days. Introduced on the shock news that even Tesco is vulnerable to the downturn, it included reports from Andrew Verity looking at whether the British economy will ever wean itself off shopping and the City, and an excellent (and all-female!) discussion including Deborah Meaden and the FT’s Gillian Tett. Try challenging your students to watch and listen to this while noting down every aspect of the syllabus which is mentioned or referred to - that will keep them busy! There was also a debate between Employment Minister Chris Grayling and disability campaigner Sue Marsh about the government’s welfare reforms, defeated in the House of Lords the night before, and finally Tokyo correspondent Roland Buerk looking at Japanese economic stagnation of the late 1980s and 90s, to consider whether it was a “lost decade” and what could be learnt from it. A2 Macro, AS Macro, Business Economics, Cycles and Shocks, Aggregate Demand, Economic History, Economic Growth, Global Economy, Government Intervention, Macroeconomic Policies, Manufacturing Industry, OECD Economies, Japan Economy, Poverty and Inequality, Standard of Living, Teaching of Economics, UK Economy, Unemployment, 2012-01-13T05:11:19+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-economics-of-fiscal-deficit-reduction http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-economics-of-fiscal-deficit-reduction#When:14:54:41Z How far, how fast and in what way should the UK government seek to cut the annual budget deficit and improve the state of public sector finances? These questions continue to be at the centre of a fierce debate among economists. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Cycles and Shocks, Aggregate Demand, Macroeconomic Policies, Fiscal Policy, Keynesian Economics, UK Economy, Recession Watch, 2012-01-12T14:54:41+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-competitive-advantage-in-trade-some-videos http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-competitive-advantage-in-trade-some-videos#When:11:43:21Z Here is a selection of short video clips that I use when teaching competitive advantage in markets and when introducing the factors that determine the competitiveness of UK producers in global markets. The focus here is on the UK economy but I will add some more videos to the blog as I work my way through this teaching topic. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Balance of Payments, Emerging Economies, Business Economics, Cycles and Shocks, Aggregate Demand, Economic Growth, Economics of Technology, Global Economy, International Trade, Macroeconomic Policies, Supply-side policies, Teaching of Economics, UK Economy, Regional Economics, 2012-01-12T11:43:21+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-uk-bond-yields-reach-record-lows http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-uk-bond-yields-reach-record-lows#When:13:55:18Z The yields on UK government issued bonds has been falling steadily in recent months and, as we turned into January 2012, the yield on ten year government debt edged below 2% - when the UK government continues to borrow eye-wateringly large sums, why are bond yields so low? The yield on a bond is the income received from a fixed-interest bond, calculated as a percentage of the price paid for it. So a ten year bond bought for £10,000 and paying a fixed annual interest of £600 would offer a yield of £600 / £10,000 = 6.0% per annum. If the market price of a bond rises - for example, it rises from £10,000 to £12,000, the fixed interest remains the same (£600) but the yield will fall. £600 / £12,000 expressed as a percentage = 5%. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Macroeconomic Policies, Fiscal Policy, UK Economy, Recession Watch, 2012-01-11T13:55:18+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-uk-trade-patterns http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-uk-trade-patterns#When:07:56:37Z The Guardian DataBlog has a superb resource here on the patterns of UK exports and imports in 2011. Ideal for printing out and using when introducing international trade. There is more official UK trade data here AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, International Trade, OECD Economies, UK Economy, 2012-01-11T07:56:37+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-does-manufacturing-matter http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-does-manufacturing-matter#When:14:16:52Z Vicky Pryce FRSA has a new article on the economic significance of manufacturing industry for UK economic renewal. It is available here from the January 2012 edition of the RSA Journal. In a related article Sir Christopher Frayling FRSA discusses the rise of the Maker Movement. Back in November 2011 Channel 4 news ran a special on the future for UK manufacturing here is a link to a related video AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Business Economics, Management Issues, Manufacturing Industry, Teaching of Economics, UK Economy, Regional Economics, Unemployment, 2012-01-10T14:16:52+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-factors-driving-business-investment http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-factors-driving-business-investment#When:13:42:35Z Profit-seeking businesses will go ahead with an investment if they believe that it will - over its projected lifetime - yield a real rate of return greater than if the money had been invested in the next best alternative way. Opportunity cost is a useful idea to use here. Private sector businesses usually focus on these objectives when investing in new capital inputs: AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Business Economics, Cycles and Shocks, Aggregate Demand, Capital Investment, Macroeconomic Policies, Keynesian Economics, UK Economy, 2012-01-10T13:42:35+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-quantitative-easing-in-the-uk http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-quantitative-easing-in-the-uk#When:20:06:05Z On 11th March 2009 the Bank of England started a policy of quantitative easing. QE is also called an ‘asset purchase scheme’. It was extended to a total of £275 billion in October 2011 and is likely to be expanded further during 2012. Other central banks have introduced quantitative easing in recent year through huge purchases of government bonds. Indeed the economist Gavyn Davies, writing recently in the Financial Times has calculated that “around one half of the bonds issued to fund the budget deficits of the US, UK and eurozone since 2008 have been acquired by the Fed, BoE and ECB.” This is a remarkable change in the conduct of monetary policy in advanced nations. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Macroeconomic Policies, Monetary Policy, UK Economy, Recession Watch, 2012-01-08T20:06:05+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-revision-quiz-on-economics-of-unemployment http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-revision-quiz-on-economics-of-unemployment#When:00:37:16Z Here are some revision multiple choice and type the correct answer questions on aspects of unemployment - designed for students taking AS Macroeconomics. Provide correct answers and see who gets the top score on the crystal cannon! The quiz has been created using Zondle. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Teaching of Economics, Digital Learning, UK Economy, Unemployment, 2012-01-06T00:37:16+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-video-resources-on-unemployment http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-video-resources-on-unemployment#When:18:17:02Z This blog entry brings together a selection of recent news reports and videos covering the economics of unemployment in the UK and inother countries. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Micro, AS Macro, Labour Market, UK Economy, Unemployment, 2012-01-03T18:17:02+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-externalities-from-metal-theft http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-externalities-from-metal-theft#When:20:42:02Z If a criminal steals metal from a building yard or a jewellers the impact is relatively isolated but when metal theft extends to lifitng metal from roofs, railway lines and many other public buildings, thousands are inconvenienced and left to pay the cost - negative externalities are clear. This news report from Al Jazeera looks at the growing economic and social problem of metal theft in London and a second video report from Channel 4 news looks at the external costs of copper theft from cables on the rail network that delays services and puts lives at risk. What are the best options for dealing with this crime epidemic? The Met Police has set up a specialist metal theft unit as part of their response. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Government Intervention, Market Failure, Externalities, Teaching of Economics, UK Economy, Regional Economics, 2012-01-02T20:42:02+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/surveys-statements-and-predictions-for-2012 http://www.tutor2u.net/blog/index.php/economics/comments/surveys-statements-and-predictions-for-2012#When:16:22:45Z As one of many turn-of-the-year round-ups, the BBC has polled 34 ‘leading economists’ in the UK and EU to find out what they expect for the EU in 2012. Unfortunately this report of the results doesn’t give details, but says that25 of the 27 respondents expect recession to return to Europe next year, with many finding it fairly likely that the eurozone will break up, and 20% expecting that at least one member will leave during next year. A2 Macro, AS Macro, Economic Growth, European Economy, International Trade, Macroeconomic Policies, UK Economy, Recession Watch, 2011-12-30T16:22:45+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/european-economics-resources-on-the-cap http://www.tutor2u.net/blog/index.php/economics/comments/european-economics-resources-on-the-cap#When:19:47:30Z This blog entry will provide a regularly updated set of links to resources to the European Union’s Common Agricultural Policy and attempts to reform this contentious and complex system of farm support. Check below for suggested links AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Micro, AS Micro, Agriculture, Emerging Economies, Commodities Markets, European Economy, EU Farming and Fishing, Government Intervention, Buffer Stocks, Government Failure, OECD Economies, French Economy, Market Equilibrium and Price, Price Mechanism in Action, Teaching of Economics, UK Economy, Regional Economics, 2011-12-28T19:47:30+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/2012-carnage-on-the-high-street http://www.tutor2u.net/blog/index.php/economics/comments/2012-carnage-on-the-high-street#When:16:26:24Z There are many retail industry experts forecasting that the early months of 2012 might be tough for some struggling retailers. We will keep this blog post updated on a regular basis as news of some high profile retail failures comes through. And we will link to media coverage of some of the attempts to restructure retailers under the threat of closure. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Business Economics, Management Issues, UK Economy, Regional Economics, Recession Watch, 2011-12-28T16:26:24+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/review-of-the-year-in-economics-guardian http://www.tutor2u.net/blog/index.php/economics/comments/review-of-the-year-in-economics-guardian#When:15:43:41Z Larry Elliott from the Guardian provides this excellent overview of key developments in the UK and world economy in 2011. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Global Economy, UK Economy, 2011-12-26T15:43:41+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-the-uk-housing-market-in-2011 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-the-uk-housing-market-in-2011#When:14:44:39Z This blog provides a chart-based overview of developments in the UK housing market in 2011. The housing industry has a big effect on macroeconomic variables such as output, employment and investment. Has there been a marked recovery in property prices, new housing starts and mortgage lending? AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Housing Economics, Market Equilibrium and Price, Price Mechanism in Action, Teaching of Economics, UK Economy, Regional Economics, London Economy, Recession Watch, 2011-12-26T14:44:39+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-brazil-overtakes-uk-in-economic-size http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-brazil-overtakes-uk-in-economic-size#When:09:36:59Z The Guardian has reported new research from the CEBR that Brazil is set to overtake the UK to become the sixth biggest economy in the world. The U.S., China, Japan, Germany and France occupy the top five places. Typically the Sun newspaper gets their economics muddled with this piece of sloppy writing “BRITAIN will fall to seventh in the league table of the world’s richest countries next year when it is leap-frogged by buoyant Brazil.” Brazil richer than the UK? The Sun is confusing the size of GDP with the level of real GDP per capita (adjusted to a purchasing power standard). And as our Timetric chart shows below there remains an enormous gap in average living standards between the UK and Brazil. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Emerging Economies, Brazil Economy, Global Economy, Standard of Living, Teaching of Economics, UK Economy, 2011-12-26T09:36:59+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-human-capital-and-economic-growth http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-human-capital-and-economic-growth#When:16:06:44Z In A2 macroeconomics the underlying causes of economic growth and development and constraints on both of these are covered in more depth. One of the concepts students might be familiar with is that of human capital. I have always summarised the idea of human capital as being a measure of the overall quality of the human input available to produce goods and services in an economy. The ONS have published a new study on the value of human capital in the UK and they draw on a definition given by the OECD AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Micro, AS Macro, Emerging Economies, Development Economics, Economic Growth, Labour Market, International Trade, Macroeconomic Policies, Supply-side policies, Teaching of Economics, Tuesday Talks, UK Economy, Unemployment, 2011-12-23T16:06:44+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/what-is-the-socially-optimal-level-of-concerts-in-hyde-park http://www.tutor2u.net/blog/index.php/economics/comments/what-is-the-socially-optimal-level-of-concerts-in-hyde-park#When:12:52:11Z It seems those fortunate enough to live next to Hyde Park are increasingly bothered by the negative externalities arising from the concerts put on there. This BBC article is a good illustration of the difficulties involved at arriving at a socially-optimal level of production. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 3, OCR AS Economics Unit F581, A2 Micro, AS Micro, Cost Benefit Analysis, Government Intervention, Government Failure, Regulation, Market Failure, Externalities, UK Economy, Regional Economics, London Economy, 2011-12-23T12:52:11+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/great-blog-to-follow-joseph-rowntree-foundation http://www.tutor2u.net/blog/index.php/economics/comments/great-blog-to-follow-joseph-rowntree-foundation#When:12:33:53Z If you are at all interested in the latest research findings in the domains of poverty, inequality, economic and social exclusion and the social impact of government policies, the Joseph Rowntree Foundation website is highly recommended. In this particular blog the JRF provide a revealing list of things that they have found during the course of 2011 - there is some excellent background evidence here for AS and A2 students wanting data to support their work on poverty and inequality and social trends in the UK. You can also follow the JRF on Twitter - use this link AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 3, A2 Micro, AS Micro, Poverty and Inequality, Standard of Living, Teaching of Economics, Teaching Opportunities, UK Economy, 2011-12-22T12:33:53+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/economics-christmas-panto-cinderella-2011 http://www.tutor2u.net/blog/index.php/economics/comments/economics-christmas-panto-cinderella-2011#When:11:47:18Z I have set my AS and A2 Economics classes a Christmas task, to write a panto script! The Story so far is in the attached word document - it tells the story of Cinderella (aka the UK economy) and the hard times she is facing, with a Wicked Stepmother and two Ugly Sisters to struggle against. But Cinders has some friends, and just as she is in despair, her Fairy Godmother, Buttons and Prince Charming (Supply-side and Demand-side fiscal policy and Quantitative Easing), turn up to rescue her. The task for the students is to write the script for the rest of the story, as each of her friends describe how they can help, and as she decides which of them can help her to live happily ever after. My A2 classes spent the last two lessons of term writing and acting out their scripts, with some truly memorable results! My AS classes have been set this as a Christmas task, and I look forward to some great performances to come in January - and I don’t see why this couldn’t be used as an early January lesson. If I was setting the task now, I would probably insist that they should include at least 3 direct references to the data in Geoff’s great Prospects for the UK Economy in 2012 powerpoint Cinderella_-_chrismas_lessons_panto_2011-1.doc A2 Macro, AS Macro, Teaching of Economics, Lesson Worksheets, UK Economy, Recession Watch, Quirky Trivia, 2011-12-22T11:47:18+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-oligopoly-and-duopoly-in-bus-markets http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-oligopoly-and-duopoly-in-bus-markets#When:15:01:48Z The UK Competition Commission has published an important report into the market structure of local and regional bus services in the UK, twenty five years after the industry was deregulated and largely privatised. Coverage of the report can be found here (BBC news). Largely as a result of a long-term process of consolidation through merger and acquisition, the UK bus industry is found to be highly concentrated with five businesses dominating the sector even though more than 1,200 businesses provides services. The five largest operators (Arriva, FirstGroup, Go-Ahead, National Express and Stagecoach) carry 70 per cent of those passengers. The CC also found that head-to-head competition between operators is un-common and that-on average-the largest operator in an urban area runs 69 per cent of local bus services - effectively a monopoly position. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, AS Micro, Business Economics, Monopoly, Oligopoly, Competition Policy, Market Equilibrium and Price, Nature of Supply, Transport Economics, UK Economy, Regional Economics, 2011-12-20T15:01:48+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/changing-consumer-behaviour-falling-incomes http://www.tutor2u.net/blog/index.php/economics/comments/changing-consumer-behaviour-falling-incomes#When:13:15:29Z What links rising VAT and energy prices, higher unemployment, loss of bonuses, a reduction in overtime and more part-time working? AS and A2 Specifications, A2 Macro, AS Macro, Cycles and Shocks, Aggregate Demand, Consumer Spending, Standard of Living, UK Economy, Recession Watch, 2011-12-19T13:15:29+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/prospects-for-the-uk-economy-in-2012-powerpoint-download http://www.tutor2u.net/blog/index.php/economics/comments/prospects-for-the-uk-economy-in-2012-powerpoint-download#When:08:52:40Z Geoff has kindly made available for download his presentation made to students at Dulwich College recently in which he analyses the prospects for the UK Economy in 2012. A Slideshare-streamed version is also provided below. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Cycles and Shocks, Global Economy, Inflation and Deflation, Macroeconomic Policies, Teaching of Economics, UK Economy, 2011-12-19T08:52:40+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-the-rise-in-self-employment http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-the-rise-in-self-employment#When:17:38:16Z One feature of the jobs market data in the UK in the last couple of years has been the surge in measured levels of self-employment (the data is collected as part of the huge Labour Force Survey) The total number of self-employed people in the UK increased by 166,000 in the three months to the end of November to reach 4.14 million - this is the highest number of self-employed people since comparable records began in 1992. What helps to explain the growth of self employment? Optimists might claim that it is a sign of a pick up in entrepreneurial activity in Britain as many people who have been made redundant decide to strike out on their own by starting a new business. A more realistic explanation is that rising self employment is a sign of macroeconomic weakness. Hundreds of thousands of people have lost their jobs and a sizeable number will simply re-categorise themselves as self employed when they are quizzed as part of the Labour Force Survey. They are likely to be scouting around for jobs and are much likely to take one or more part time jobs when they can. Part time employment was up sharply, but do not forget that the number of full-time employees fell by 188,000 in the three-month period covering August, September and October - that is more than 2,000 people per day losing their jobs.   AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Labour Market, Macroeconomic Policies, UK Economy, Unemployment, 2011-12-17T17:38:16+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-empty-housing-and-economic-efficiency http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-empty-housing-and-economic-efficiency#When:11:08:50Z Channel 4 recently focused on the causes and effects of the hundreds of thousands of empty homes in the United Kingdom. Why is it given persistent shortages of affordable housing that perhaps a million homes lie empty and unused whilst an estimated two million families are in severe housing needs. New housebuilding has collapsed and in Britain we are building 100,000 fewer new houses every year than we need just to keep up with the changing mix of households and demographic change. An interesting exercise is to show students some of the Channel 4 Campaign videos and then get them to put together policy ideas as to how to reduce the volume of empty homes and reduce the length of housing waiting lists. Links to some of the Channel 4 videos can be accessed below: AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, GCSE Economics, Housing Economics, Government Intervention, Regulation, Subsidies, Introductory Economics, Market Equilibrium and Price, Nature of Demand, Nature of Supply, Standard of Living, Teaching of Economics, UK Economy, Regional Economics, London Economy, 2011-12-15T11:08:50+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/great-economics-blog-to-follow-danny-quah http://www.tutor2u.net/blog/index.php/economics/comments/great-economics-blog-to-follow-danny-quah#When:09:03:57Z Professor Danny Quah from the London School of Economics has a superb blog and I recommend it heartily to economics teachers and students. It is particularly excellent for understanding developments in the global economy, not least Danny’s work in plotting the changing centre of gravity in the world economy over the long term. Here is the link to use. The LSE Public Events team has just released their programme for the New Year, there are plenty of really interesting talks coming up and you can access the Spring 2012 Events Programme by clicking on this link   AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, Economic Growth, Global Economy, OECD Economies, Teaching of Economics, UK Economy, 2011-12-15T09:03:57+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/rising-prices-and-falling-real-incomes2 http://www.tutor2u.net/blog/index.php/economics/comments/rising-prices-and-falling-real-incomes2#When:17:54:03Z The CPI headline inflation rate has fallen to 4.8%. This BBC chart shows recent changes in the rate of increase of the general price levels using CPI and RPI indicators. AS and A2 Specifications, AQA Economics Unit 2, OCR AS Economics Unit F582, A2 Macro, AS Macro, Inflation and Deflation, Standard of Living, UK Economy, Regional Economics, 2011-12-13T17:54:03+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-hope-bikes-a-commitment-to-excellence http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-hope-bikes-a-commitment-to-excellence#When:17:44:51Z Are you into your cycling? The huge expansion of interest in cycling in the UK from road racing through to BMX and mountain-biking has gone hand in hand with the fantastic success of British cyclists on the international stage. 2012 promises to be another strong year for the industry despite difficult economic conditions. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Management Issues, Economic Growth, Economics of Technology, International Trade, Manufacturing Industry, Teaching of Economics, Transport Economics, UK Economy, Regional Economics, 2011-11-30T17:44:51+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-does-uk-manufacturing-have-a-future http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-does-uk-manufacturing-have-a-future#When:11:11:47Z Here are links to two superb short reports on prospects for UK manufacturing as the British economy struggles to escape from recession and sluggish growth forecasts in 2011 and 2012. Both are from Channel 4 News that produced a special on the health of the manufacturing sector - excellent for evaluation and for some applied examples to build into essays. The links appear below AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Business Economics, Management Issues, Macroeconomic Policies, Supply-side policies, Manufacturing Industry, Teaching of Economics, UK Economy, Regional Economics, Unemployment, 2011-11-30T11:11:47+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-will-a-youth-jobs-subsidy-work http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-will-a-youth-jobs-subsidy-work#When:11:03:38Z The Coalition Government recently heralded a new scheme designed to address the structural problem of high youth unemployment in the UK economy. Under their “youth contract” plan, employers will be given “wage incentives” worth £2,275 to take on some 160,000 18-to-24-year-olds. But will it have much impact on the problem? The independent Office for Budgetary Responsibility says that the net effect on overall unemployment will be close to zero, because the subsidy incentive will lead to a switch in employment away from older workers. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, A2 Macro, AS Macro, Business Economics, Cycles and Shocks, Aggregate Supply, Government Intervention, Subsidies, Labour Market, Macroeconomic Policies, Supply-side policies, Teaching of Economics, UK Economy, Unemployment, 2011-11-30T11:03:38+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/analysis-of-the-autumn-statement http://www.tutor2u.net/blog/index.php/economics/comments/analysis-of-the-autumn-statement#When:21:14:45Z AS level students who have studied AD, AS and macroeconomic equilibrium should be in a position to carry out an economic analysis of today’s Autumn Statement. Here is a suggested assignment, which borrows from the focus on ‘connectives’ in the Business Workshops this week to help to build a strong chain of argument. AS Macro, Macroeconomic Policies, Fiscal Policy, Teaching of Economics, UK Economy, 2011-11-29T21:14:45+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/where-is-the-uk-economy-national-output http://www.tutor2u.net/blog/index.php/economics/comments/where-is-the-uk-economy-national-output#When:05:18:41Z The first of an occasional series - putting economic data into context. First we focus on the level of real national output in the UK in the aftermath of the recession and with recovery appearently grinding to a halt. UK GDP remains well below the peak of national output at the end of the last cycle in the early months of 2008. During the recession, national output fell by a cumulative 7 per cent. Since then there has been a slow and uncertain recovery and the Bank of England has recently slashed their growth forecasts for the remainder of 2011 and for 2012. Growth of less than 1 per cent will cause unemployment to rise and will damage business and consumer confidence (animal spirits) and further undermine planned capital investment spending. There is a real danger than UK trend economic growth (the estimated annual growth of potential GDP) will continue to edge lower affecting living standards and any chance of the government meeting its medium term deficit reduction targets. Bank of England: Bank of England finds risk of crisis biggest since 2008 AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Cycles and Shocks, Aggregate Demand, Macroeconomic Policies, UK Economy, Recession Watch, 2011-11-23T05:18:41+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/jim-oneill-the-growth-map-economic-opportunity-in-the-brics-and-beyond http://www.tutor2u.net/blog/index.php/economics/comments/jim-oneill-the-growth-map-economic-opportunity-in-the-brics-and-beyond#When:20:15:33Z Jim O’Neill the Chairman of Goldman Sachs Asset Management has a new book published early next week and it looks like being a tremendous resource for teachers and students wanting to deepen their understanding of crucial changes in the global economy. The Telegraph has been publishing extracts from the book - to have a view please click on the links below: AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, Brazil Economy, China Economy, Indian economy, Russia Economy, Cycles and Shocks, Economic Growth, Global Economy, International Trade, OECD Economies, Teaching of Economics, UK Economy, 2011-11-22T20:15:33+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/uk-unemployment-in-november-2011-a-video-overview http://www.tutor2u.net/blog/index.php/economics/comments/uk-unemployment-in-november-2011-a-video-overview#When:11:08:33Z The presentational style might leave a little to be desired, but this analytical ONS video might provide colleagues with a different teaching resource to help explain the rapid rise in UK unemployment. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Labour Market, UK Economy, Unemployment, 2011-11-22T11:08:33+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-a-prezi-on-unemployment-policies http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-a-prezi-on-unemployment-policies#When:18:13:24Z After a hesitant start and some time spent getting to know the user interface, I am starting to use Prezi more widely as an alternative to other presentation software. I would be really keen to share ideas and collaborate on presentations with other colleagues so if you are interested in joining up please let me know. Here is an initial presentation I used this afternoon on unemployment policies - focusing on ten strategies to reduce unemployment. The aim is to stimulate discussion among students who can take apart the proposals and substitute their own. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Macroeconomic Policies, Keynesian Economics, Market Failure, Factor Immobility, Teaching of Economics, Digital Learning, UK Economy, Unemployment, 2011-11-16T18:13:24+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/ocr-f585-key-concepts-in-the-jan-2012-paper http://www.tutor2u.net/blog/index.php/economics/comments/ocr-f585-key-concepts-in-the-jan-2012-paper#When:10:10:41Z The January 2012 OCR F585 Global economy pre-release paper is now out and the Tutor2u team is working hard to produce a study toolkit for this paper with the final document available at the end of November. We will also be supporting preparation for the exam through our blog and a dedicated channel which you can find by clicking here and then adding a bookmark. The pre-release materials once more contain and combine a pleasing selection of important domestic and international themes - here is a quick listing of some of the concepts explored in the various extracts each of which will be considered in our toolkit resource. AS and A2 Specifications, OCR A2 Economics Unit F585, Teaching of Economics, UK Economy, 2011-11-14T10:10:41+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-the-state-of-british-business http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-the-state-of-british-business#When:12:20:49Z How well is British business coping in the aftermath of recession and during a sluggish recovery? Are there signs of improvement or are there warning signs that the UK business sector is fragile and vulnerable as we head into 2012? Four AS macro students - James Richardson, Ludo Higgin, Joe Landman and Nick Russell collaborated on this excellent piece and searched for some revealing clues about the resilience of British businesses at this crucial stage of the economic cycle. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Business Economics, Macroeconomic Policies, Manufacturing Industry, Teaching of Economics, UK Economy, Recession Watch, Unemployment, 2011-11-13T12:20:49+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/eurozone-crisis-a-selection-of-resources http://www.tutor2u.net/blog/index.php/economics/comments/eurozone-crisis-a-selection-of-resources#When:09:25:05Z How to deal with this in school? I cannot be the only teacher who is struggling to keep up with the eurozone developments myself, let alone help my students to make any sense of it. Some searching this morning has come up with a variety of articles, graphics and interviews which range from the very basic such as the one-minute video reports from Robert Peston, which might be helpful to an AS student who is just starting to get to grips with the principles of macroeconomics, to some analysis of actual and potential threats to the UK economy and graphics showing the interrelated borrowing between the eurozone countries, which might help the ambitious A2 students to stretch themselves. These are listed below, with a brief description of each one. I am sure that you will have many more to add to the list. A2 Macro, AS Macro, European Economy, Financial Markets, Macroeconomic Policies, OECD Economies, UK Economy, 2011-11-12T09:25:05+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-video-clips-on-unemployment http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-video-clips-on-unemployment#When:12:53:51Z I blogged last week about unemployment and made available some updated charts on unemployment for the UK and a range of other countries. Here are some short video news clips on aspects of unemployment that I have been using when teaching unemployment to AS and A2 groups. These clips provide a window on the human and social cost of high rates of unemployment and are especially useful in reinforcing the causes of unemployment and evaluation of policies likely to be most effective in bringing jobless rates down over time. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Cycles and Shocks, Aggregate Demand, Macroeconomic Policies, Supply-side policies, Keynesian Economics, Market Failure, Factor Immobility, Teaching of Economics, UK Economy, Regional Economics, Unemployment, 2011-11-06T12:53:51+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-china-and-india-notes-from-martin-wolf http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-china-and-india-notes-from-martin-wolf#When:10:05:08Z Pete Davies from Greenhead College attended a superb talk by Martin Wolf CBE (Financial Times) at Leeds Business School last week. The focus was on the Great Convergence between developed and emerging economies, and Peter kindly took some excellent notes from the talk which will be of great use to teachers and students covering this key globalisation / development topics. They can be downloaded below as a word file - many thanks to Peter for making them available through the blog! Martin_Wolf_Lecture_Oct_2011.docx AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Balance of Payments, Emerging Economies, Development Economics, China Economy, Indian economy, Cycles and Shocks, Economic Growth, Global Economy, IMF, International Trade, OECD Economies, Standard of Living, Teaching of Economics, UK Economy, 2011-11-06T10:05:08+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-richard-florida-on-the-great-reset http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-richard-florida-on-the-great-reset#When:10:16:03Z What changes are produced by great economic upheavals? The financial and economic crisis prompts a rethinking of the assumptions about how businesses succeed and how economies operate. In a recent edition of the Global Business programme on BBC radio 4, Peter Day met Richard Florida, a renowned economic geographer who has written a new book The Great Reset. Here are some of the notes I jotted down from the programme: AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Business Economics, Economic History, Economic Growth, Economics of Technology, Environmental Economics, Manufacturing Industry, Teaching of Economics, UK Economy, Regional Economics, 2011-11-05T10:16:03+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/here-there-be-neets http://www.tutor2u.net/blog/index.php/economics/comments/here-there-be-neets#When:10:00:16Z Regional unemployment is seen as a significant economic problem, but employers may be reluctant to relocate if the educational quality of the workforce is below par. The term NEET refers to young people Not in Education, Training and Employment, and it appears that there are significant pockets of NEETs across the mainland of Great Britain. AS and A2 Specifications, A2 Macro, AS Macro, Demography, Labour Market, Macroeconomic Policies, Supply-side policies, UK Economy, Regional Economics, Unemployment, 2011-11-04T10:00:16+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/global-economy-making-it-clear http://www.tutor2u.net/blog/index.php/economics/comments/global-economy-making-it-clear#When:05:15:06Z I have just come across this page on the BBC website which act as a portal, collecting together a variety of stories around a topic, and is therefore really useful to refer students to. It is listed as a Special Report; I am not sure if it is new or not so apologies if you have been aware of it for a long time already; however, if you have not, it seems worth highlighting here. AS and A2 Specifications, AQA Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, European Economy, International Trade, Teaching of Economics, UK Economy, 2011-11-02T05:15:06+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-unemployment-chart-resource-download http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-unemployment-chart-resource-download#When:10:48:07Z At this time of the year many teachers are covering aspects of unemployment - causation, measurement, consequences and policies directed to reduce the scale of the jobless problem. Here is a completely up to date chart set covering unemployment data for the UK and a number of other countries. It is available for free download using this link. I hope it proves useful for some colleagues. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Teaching of Economics, UK Economy, Unemployment, 2011-10-29T10:48:07+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-uk-executive-pay-all-in-it-together http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-uk-executive-pay-all-in-it-together#When:09:55:00Z At a time when millions of people are taking nominal or real pay cuts, the news that chief executives of FTSE-100 companies have seen their earnings rise by 43% in the last year is particularly difficult to stomach. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 1, A2 Micro, AS Micro, Business Economics, Government Intervention, Labour Market, Trade Unions, Poverty and Inequality, Teaching of Economics, UK Economy, 2011-10-29T09:55:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/university-fees-and-elasticity http://www.tutor2u.net/blog/index.php/economics/comments/university-fees-and-elasticity#When:10:12:19Z When teaching price elasticity of demand, here is a good article on the BBC today on the effect of higher university fees on demand for higher education. Good for discussion of how PED will differ with respect to different types of consumer and for different types of universities, as well as the cross price elasticity of demand with foreign universities. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, A2 Micro, AS Micro, Labour Market, Market Equilibrium and Price, Elasticity of Demand, Nature of Demand, Teaching of Economics, UK Economy, 2011-10-24T10:12:19+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-a-widening-regional-divide-in-life-expectancy http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-a-widening-regional-divide-in-life-expectancy#When:17:23:20Z Life expectancy in the United Kingdom continues to improve. But one important aspect of the deep and structural divide in incomes, economic activity and status and health across different groups in Britain is the marked variation in average life expectancy for men and women. The UK Statistics Commission has just published new data on this covering the period 2004-2010 and finds that: AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, A2 Macro, AS Macro, Cycles and Shocks, Aggregate Supply, Demography, GCSE Economics, Health Economics, Poverty and Inequality, Standard of Living, Teaching of Economics, UK Economy, Regional Economics, Unemployment, 2011-10-19T17:23:20+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-economic-importance-of-investment http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-economic-importance-of-investment#When:14:41:47Z Capital investment spending can have a significant effect on both the demand and the supply-side of the economy. We were looking at this issue in class this afternoon and I used a small selection of video clips linking to investment projects across different countries. I have linked to them below: AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Business Economics, Macroeconomic Policies, Supply-side policies, UK Economy, 2011-10-19T14:41:47+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-positive-and-negative-multiplier-effects http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-positive-and-negative-multiplier-effects#When:07:44:03Z An initial change in aggregate demand can have a much greater final impact on equilibrium national income. This is known as the multiplier effect. It comes about because injections of new demand for goods and services into the circular flow of income can stimulate further rounds of spending – in other words “one person’s spending is another’s income”. Put another way, spending becomes someone else’s income. This can lead to a bigger eventual effect on output and employment. Here are three recent news videos covering aspects of the multiplier effect at work: AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Cycles and Shocks, Aggregate Demand, GCSE Economics, Teaching of Economics, UK Economy, Unemployment, 2011-10-14T07:44:03+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-can-exports-drive-a-recovery http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-can-exports-drive-a-recovery#When:14:12:47Z UK overseas trade is in the news today with the release of a batch of figures showing a record level of UK exports - see BBC news - UK trade deficit cut by higher exports AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Balance of Payments, Business Economics, Cycles and Shocks, Aggregate Demand, Global Economy, Macroeconomic Policies, Trade Policies, UK Economy, Recession Watch, 2011-10-13T14:12:47+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/uk-unemployment-in-october-2011 http://www.tutor2u.net/blog/index.php/economics/comments/uk-unemployment-in-october-2011#When:12:03:22Z There were some desperately disappointing unemployment and employment numbers published for the UK economy today. Even taking due note of the need not to focus too much on one set of data the UK labour market looks to be weakening as fast as the autumn leaves are falling. The human and social cost of the high jobless figures is enormous and the macroeconomic effect of fewer people in work and paying taxes will dent further hopes of a solid recovery. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR AS Economics Unit F582, Global Economy, Credit Crunch, Labour Market, Macroeconomic Policies, Teaching of Economics, UK Economy, Recession Watch, Unemployment, 2011-10-12T12:03:22+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-unit-labour-costs-and-inflation http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-unit-labour-costs-and-inflation#When:11:53:25Z Over many years the rate of change of unit labour costs (ULCs) has been a decent reliable indicator of inflationary pressures in the UK economy. Times when wage costs adjusted for productivity have grown quickly have often coincided with a rise in the annual rate of inflation - little wonder when payroll costs are a sizeable chunk of operating expenses for many businesses. But in the last couple of years we have seen a growing disconnect between unit labour cost inflation and the published figures for CPI. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Cycles and Shocks, Aggregate Demand, Consumer Spending, Labour Market, Macroeconomic Policies, Standard of Living, UK Economy, Recession Watch, Unemployment, 2011-10-12T11:53:25+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-uk-suffers-a-weak-recovery http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-uk-suffers-a-weak-recovery#When:08:34:36Z AS macro students will be studying the economic cycle and following the struggles of many countries to sustain a recovery in demand, output and jobs after the 2008-09 recession. The well respected independent forecasting body, the National Institute (NIESR) has produced new data suggesting that the UK recovery is on course to be “the weakest of any since the end of the First World War”, with gross domestic product still 4pc below its pre-recession peak. The risks of a second recession (a double dip) look to be rising week by week especially when one looks at the consumer and business confidence data. Here is a link to the NIESR report and also to BBC news coverage of their findings. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Cycles and Shocks, Aggregate Demand, Economic Growth, Macroeconomic Policies, Teaching of Economics, UK Economy, Recession Watch, 2011-10-12T08:34:36+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-consumer-spending-charts-for-the-uk http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-consumer-spending-charts-for-the-uk#When:16:49:33Z As a follow up to my homework assignment I have attached below in a powerpoint file a set of data charts used as handouts and a prompt for discussion in our AS macro lessons on consumer spending. Consumer_Spending_Charts.pptx AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Cycles and Shocks, Aggregate Demand, Consumer Spending, Teaching of Economics, UK Economy, 2011-10-03T16:49:33+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-homework-assignment-on-consumer-spending http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-homework-assignment-on-consumer-spending#When:16:45:49Z I have attached below an example of a homework assignment for my Unit 2 macro economic group which focuses on some of the main drivers of consumer demand for goods and services. It is available for free download as a pdf file. Discussion in class will centre on income, wealth, interest rates, confidence and expectations as key determinants. This is a particularly important stage of the economic cycle and there are many influences constraining household demand as we head towards the end of 2011. AS_Macro_EW_Conusmption.pdf AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Cycles and Shocks, Aggregate Demand, Consumer Spending, Global Economy, Credit Crunch, Inflation and Deflation, Macroeconomic Policies, Teaching of Economics, UK Economy, 2011-10-03T16:45:49+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/nmw-classical-real-wage-unemployment http://www.tutor2u.net/blog/index.php/economics/comments/nmw-classical-real-wage-unemployment#When:16:42:17Z As the government increased the NMW this weekend by 15p to £6.08 an hour for adults….....the minimum wage may be pricing young people out of work because employers are finding it too expensive to give them their first job, Government pay advisers have said. Good application here for discussing real-wage classical unemployment. Read more here. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, A2 Micro, AS Micro, Business Economics, Government Intervention, Minimum Prices, Labour Market, UK Economy, Unemployment, 2011-10-03T16:42:17+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/changing-consumer-behaviour-taxing-saturated-fat http://www.tutor2u.net/blog/index.php/economics/comments/changing-consumer-behaviour-taxing-saturated-fat#When:21:22:11Z The government in Denmark, has introduced additional taxes on foods which contain more than 2.5% saturated fat. It will add 25p on packets of butter, 8p on crisps. This BBC news clip introduces this new fiscal measure. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 2, EdExcel Economics Unit 1, EdExcel Economics Unit 2, OCR AS Economics Unit F581, OCR AS Economics Unit F582, AS Macro, AS Micro, Cycles and Shocks, Aggregate Demand, Consumer Spending, Market Failure, Standard of Living, UK Economy, Recession Watch, 2011-10-02T21:22:11+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-science-cities-and-external-economies-of-scale http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-science-cities-and-external-economies-of-scale#When:12:14:59Z This feature article from the BBC web site is essentially about the vital importance of high-knowledge industries in sustaining competitiveness and growth in a globalising world. Europe lags behind many emerging countries in terms of the resources devoted to science and technology, research and development and creative industries in particular. But the article makes reference to the expansion of science cities - knowledge clusters that bring together higher education expertise and entrepreneurial zeal - their number continues to grow from California and Boston in the USA, Cambridge in the UK, Education City in Qatar, Science City in Zurich and Digital Media City in Seoul. All good examples to use of the commercial leverage from external economies of scale in high-tech industries. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Emerging Economies, Business Economics, Economies of Scale, Economic Growth, Economics of Technology, European Economy, Single Market, Global Economy, International Trade, Macroeconomic Policies, Supply-side policies, Manufacturing Industry, Teaching of Economics, UK Economy, 2011-09-29T12:14:59+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-imf-flags-up-risks-of-double-dip http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-imf-flags-up-risks-of-double-dip#When:19:16:00Z Here are some of the salient points from the gloomy World Economic Forecast from the IMF which argues that the global economy has entered a dangerous phase. The IMF report highlights many of the vulnerabilities facing both developed and emerging economies. In Britain the media is emphasising a sizeable reduction in the forecast rate of growth for the UK for 2011 and 2012. Real GDP in the UK is likely to expand by just 1.1% in 2011 and 1.6% next year and the IMF economists say that there is a one in five chance of a double dip recession. Weak growth is terrible news for the Chancellor who is hoping for a significant expansion of the private sector to offset fiscal cuts and to meet the targets for fiscal deficit reduction. It is also awful for prospects of a meaningful reduction in unemployment and prospects of tackling the structural issue of very high youth unemployment rates. Incidentally that risk of a double-dip is thought to be much higher in the United States where the probability of a second recession following a partial recovery is put at 40%. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Emerging Economies, Cycles and Shocks, Global Economy, IMF, Credit Crunch, Teaching of Economics, UK Economy, Recession Watch, 2011-09-20T19:16:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/the-morality-of-taxation http://www.tutor2u.net/blog/index.php/economics/comments/the-morality-of-taxation#When:06:05:00Z Morally, does it matter how rich the rich are? Or should our real concern be how poor the poor are? There was a great edition of The Moral Maze on Radio 4 last night, with debate sparked by the growing lobby calling for the 50% rate of income tax to be cut. The programme is available on i-player here, and it is really worth spending 43 minutes to listen to it - perhaps as preparation for a classroom debate. A2 Macro, Macroeconomic Policies, Fiscal Policy, Teaching of Economics, UK Economy, 2011-09-15T06:05:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/uk-macro-risks-of-a-double-dip-recession http://www.tutor2u.net/blog/index.php/economics/comments/uk-macro-risks-of-a-double-dip-recession#When:10:04:00Z How close is the British economy to experiencing a double-dip recession? Many of the key macro-economic indicators are heading in a southerly direction - new orders, business and consumer confidence, real incomes, housing starts and the worst of the fiscal squeeze on the economy is yet to hit.  For those teaching the economic cycle and also for students wanting to get a picture of where the economy is at this crucial time, I have put together a slide presentation on the risks of a double-dip recession together with a link for the PowerPoint download. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Cycles and Shocks, Teaching of Economics, UK Economy, Recession Watch, 2011-09-12T10:04:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/econ-in-the-news http://www.tutor2u.net/blog/index.php/economics/comments/econ-in-the-news#When:18:09:00Z A random selection of economics in the news today to discuss with your classes, especially for immersing the new AS macro pupils in the subject: From the news today: -  High tax rate harms UK economy : Good to discuss concepts such as incentives to work; brain drain; Laffer curve; elasticities; labour mobility ; tax evasion vs tax avoidance - Greece to speed up cost cutting : Good for discussing fiscal austerity; Eurozone debt crisis; - UK international competitives falls : Good for discussing factors that affect international competitiveness on the A2 course - Google’s antitrust raids : The new Microsoft. - Childcare costs in UK soar : Good for ideas on child poverty; labour market immobility; supply side policies - Why is US debt so high? (1) ; (2)  - Swiss franc intervention : Currency wars for 2011-2012 have started early this academic year - protectionism; beggar thy neighbour policies A2 Macro, AS Macro, Macroeconomic Policies, Teaching of Economics, UK Economy, 2011-09-07T18:09:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-evan-davis-on-re-balancing-the-economy http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-evan-davis-on-re-balancing-the-economy#When:16:53:00Z Here is a terrific resource for teachers and students looking for an assessment of where the UK economy might be heading at a crucial stage of the economic cycle. BBC radio 4’s Today programme has three reports on the challenges facing the UK economy from Evan Davis. Here is the link to the main web page article from which the three short radio reports can be accessed. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Cycles and Shocks, Macroeconomic Policies, Teaching of Economics, UK Economy, Recession Watch, 2011-08-25T16:53:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-gdp-per-person-since-the-credit-crunch http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-gdp-per-person-since-the-credit-crunch#When:06:46:00Z The Economist has a tremendous charts available here showing what has happened to GDP per person employed since the Global Financial Crisis hit in 2007. The range of outcomes is huge with countries such as China, India, Indonesia and Poland achieving solid gains (indeed Poland was one of the few EU countries to avoid recession) whilst the PIIGS including Greece, Ireland and Italy have suffered badly. The UK is not immune too as the chart makes clear. The chart would make for a terrific discussion among students starting their Unit 4 course and could also be used as a teaching resource for students new to macroeconomics - not least in prompting discussion of the meaning and measurement of GDP and the concept of the economic cycle. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, Cycles and Shocks, Economic Growth, Global Economy, OECD Economies, Teaching of Economics, UK Economy, 2011-08-19T06:46:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/transport-economics-rail-investment http://www.tutor2u.net/blog/index.php/economics/comments/transport-economics-rail-investment#When:16:59:00Z Here is a super short transport cost benefit analysis example regarding plans to re-open a rail link between Oxford and Milton Keynes could generate millions of pounds for the economy. In total it would cost £178m and then £11.6m a year to run, but Oxford Economics says it would bring an economic benefit to the area which it estimates at £32m a year. This BBC news video would make for a good short introduction to the example, and here are some other links to coverage of the Oxford Economics research in the local papers. Oxford Mail: Rail link could be worth £38m a year Official web site East West Rail   AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, A2 Micro, AS Micro, Cost Benefit Analysis, Macroeconomic Policies, Supply-side policies, Teaching of Economics, Transport Economics, UK Economy, Regional Economics, 2011-08-12T16:59:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/keynes-vs-hayek-how-to-solve-an-economic-crisis http://www.tutor2u.net/blog/index.php/economics/comments/keynes-vs-hayek-how-to-solve-an-economic-crisis#When:07:42:00Z As major economies are buffeted by crisis again, the excellent Keynes vs Hayek debate held at the LSE last month is thrown into ever sharper context. You can hear the 30-minute radio programme made from the debate here on BBC i-player, or download it as a podcast. There is also an article here introducing the opposing arguments, which students could use in September to analyse the changes to the global economic situation - no doubt there are still many twists and turns to come in the next month for them to work with. Cycles and Shocks, European Economy, Financial Markets, Government Intervention, Macroeconomic Policies, Monetarism, Teaching of Economics, UK Economy, Recession Watch, 2011-08-08T07:42:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/monetary-policy-roundtable http://www.tutor2u.net/blog/index.php/economics/comments/monetary-policy-roundtable#When:10:49:01Z The Bank of England have published minutes of a 6-monthly meeting held with the Centre for Economic Policy on 24th June to discuss monetary policy matters. The meetings are held under ‘Chatham House Rules’ which means that participants are not named, but they included a range of economists from private sector financial institutions, academia and public sector bodies. The comments reported in the minutes are also not attributable to individuals or to the institutions they represent, but make some interesting reading which might well be useful for student economists returning to start on the A2 macroeconomics course in September. A2 Macro, Macroeconomic Policies, Monetary Policy, Teaching of Economics, UK Economy, 2011-07-25T10:49:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/we-need-to-make-more-stuff-using-the-same-number-of-people http://www.tutor2u.net/blog/index.php/economics/comments/we-need-to-make-more-stuff-using-the-same-number-of-people#When:07:17:01Z So says Stephanie Flanders, in this broadcast from the Today programme in which she explores whether or not the growth in employment this week is a good thing. The key, of course, is productivity and the economy’s capacity to grow, and therefore to recover. She explains the interrelationship between manpower and output with her usual clarity,with a brief reference to both sides of the issue, and to the short term and long term consequences of the recent rise in private sector employment - thus giving an ideal essay plan!.  This is such a key concept in AS macroeconomics (and A2 as well) that I think this two-and-a-half minute piece is well worth saving and using with new groups of economists next term. A2 Macro, AS Macro, Labour Market, Macroeconomic Policies, Standard of Living, UK Economy, Unemployment, 2011-07-16T07:17:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-dangers-of-high-inflation http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-dangers-of-high-inflation#When:15:43:00Z The annual rate of inflation in the UK has overshot its 2 per cent target in 51 of the past 60 months and this has led some economists to believe that the Bank of England has been adopting a tacit policy of allowing inflation to stay above target by keeping official monetary policy interest rates at 0.5% since the Spring of 2009. The Governor of the Bank of England Mervyn King has expressed his concern about “uncomfortably high rates of inflation” but the Bank’s Monetary Policy Committee has yet to reverse the steep falls in interest rates that came in the wake of the global financial crisis in 2008-09. Although modest but persistently higher inflation might be helpful in reducing the real value of outstanding government debt there are also underlying dangers in allowing above-target inflation for a considerable length of time. This blog will look at these. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Inflation and Deflation, Macroeconomic Policies, Monetary Policy, Teaching of Economics, UK Economy, 2011-07-11T15:43:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-reducing-unemployment-after-a-recession http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-reducing-unemployment-after-a-recession#When:12:30:00Z How quickly do people find new work after they have been made redundant and experienced a period of unemployment? According to new research published in the May 2011 edition of the Economic Journal, only around one person in every ten unemployed in Britain finds fresh work within a month and nearly half of the extra unemployed created in the wake of an economic shock such as the fallout from the global financial crisis are still without a new job after six months. If government economic policies and the labour market generally are failing to get people back into paid jobs the impact of a recession on unemployment rates can last for a substantial time period bringing with it increased economic and social costs. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Cycles and Shocks, Aggregate Demand, Labour Market, Macroeconomic Policies, Market Failure, Factor Immobility, UK Economy, Recession Watch, Unemployment, 2011-07-11T12:30:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-oligopsony-dairy-losses-drive-farmers-from-the-fields http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-oligopsony-dairy-losses-drive-farmers-from-the-fields#When:21:43:00Z Hats off to the herd! Milk production in the UK is expanding yet many dairy farmers have or are likely to leave the industry over the next five years unless raw milk production becomes more economically viable. Can the stakeholders in the sector reach fresh agreement on sustainable contracts for the near 40 million litres of milk produced every day? AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, AS Micro, Agriculture, Business Economics, Economies of Scale, Oligopoly, European Economy, EU Farming and Fishing, Government Intervention, Market Equilibrium and Price, Nature of Demand, Nature of Supply, Price Mechanism in Action, Teaching of Economics, UK Economy, Regional Economics, 2011-07-10T21:43:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/the-rising-cost-of-the-minimum-standard-of-living http://www.tutor2u.net/blog/index.php/economics/comments/the-rising-cost-of-the-minimum-standard-of-living#When:05:34:00Z The Joseph Rowntree Foundation has just published its annual report into Minimum Income Standard for the UK, reported here by the BBC, and showing how much money is needed for an acceptable standard of living. They look at the effects of tax and benefits on the budgets for different family types to show the wage you need to earn in order to have enough to afford what ordinary members of the public (their definition) agree is needed to survive and take part in today’s society. AS and A2 Specifications, AQA Economics Unit 4, A2 Macro, Macroeconomic Policies, Poverty and Inequality, Standard of Living, Teaching of Economics, UK Economy, Recession Watch, Unemployment, 2011-07-05T05:34:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/protection-of-british-jobs http://www.tutor2u.net/blog/index.php/economics/comments/protection-of-british-jobs#When:06:01:00Z Is this protectionist, or is it common sense? Today’s headlines are all about Ian Duncan Smith’s speech in which he urges British employers to give young unemployed workers in the UK a ‘level playing-field’ and a better chance of getting the jobs which are being created. A2 Macro, Government Intervention, Labour Market, Macroeconomic Policies, Supply-side policies, UK Economy, Unemployment, 2011-07-01T06:01:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/global-economy-increased-risk-of-future-shocks http://www.tutor2u.net/blog/index.php/economics/comments/global-economy-increased-risk-of-future-shocks#When:07:05:00Z A new OECD report on the risks of external shocks to the global economy looks like being really useful for teachers preparing fresh materials for their courses. “The interconnectedness of the global economy makes it more vulnerable to major shocks…...these shocks include cyber attacks, pandemics, geomagnetic storms, social unrest and financial crises.” The report can be downloaded here. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, Business Economics, Management Issues, Cycles and Shocks, Aggregate Demand, Aggregate Supply, Environmental Economics, European Economy, Global Economy, Credit Crunch, Government Intervention, Macroeconomic Policies, OECD Economies, Teaching of Economics, UK Economy, 2011-06-28T07:05:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/uk-firms-wake-up-to-brazilian-opportunities http://www.tutor2u.net/blog/index.php/economics/comments/uk-firms-wake-up-to-brazilian-opportunities#When:05:34:01Z As Nick Clegg makes his delayed visit to Brazil this week, with the aim of doubling UK exports to this fast-growing economy, the UK’s former Consul-General in Sao Paolo has written an interesting piece for the BBC’s website. As Martin Raven points out, British business has taken a long time to take Brazil seriously, and this high-level visit replaces one that was due to take place in February but cancelled at less than a week’s notice because of the debate in the House of Commons over the AV referendum - which can hardly have helped. As a result, he says, the UK has fallen behind other countries investment into the Brazilian economy and “there are now more international German companies in Sao Paulo alone than in any individual city in Germany.” Emerging Economies, Brazil Economy, Global Economy, International Trade, UK Economy, 2011-06-22T05:34:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/evan-davis-made-in-britain-and-a-new-trade-data-tool-to-play-with http://www.tutor2u.net/blog/index.php/economics/comments/evan-davis-made-in-britain-and-a-new-trade-data-tool-to-play-with#When:06:52:00Z The first episode of a 3-part series, Made in Britain, was shown on BBC 2 last night, and was a really useful hour for economics (or business) students. It examined how and why Britain has lost thousands of manufacturing jobs over the last two or three decades in the low-value part of the sector, with some film of outsourcing shot in China as well as plenty of archive material from this country, but argued that the move to high-end, low scale manufacturing has become Britain’s area of comparative advantage in industrial manufacturing. This included Evan being taken for a test drive in the new McLaren sports car, which was clearly an amazing experience - watch the clip to see his reaction! And this surely emphasises the Economic Importance of Manufacturing to the UK economy - see below! Sadly this episode is not to be broadcast again, but is available on i-player for another 22 days and is thoroughly worth watching. I will certainly be setting the recording machine for the next two programmes, on Mondays at 9.00 on BBC2 - episode 2 is to focus on how innovation can help keep Britain ahead in the global economy. AS and A2 Specifications, AQA Economics Unit 4, A2 Macro, Balance of Payments, Commodities Markets, International Trade, Manufacturing Industry, Teaching of Economics, UK Economy, 2011-06-21T06:52:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/econ4-context http://www.tutor2u.net/blog/index.php/economics/comments/econ4-context#When:19:13:00Z Geoff’s blog about ECON4 (see below) is fantastic advice, and I hope that my A2 students will spend much of the next 2 days working their way through it, checking they are secure in their knowledge of the topics he has identified, and can apply them to the context areas suggested there. If they have finished all that, and want yet more up-to-date evidence there is plenty in the news in the last few days. AS and A2 Specifications, AQA Economics Unit 4, A2 Macro, Emerging Economies, China Economy, Commodities Markets, Cycles and Shocks, European Economy, International Trade, Macroeconomic Policies, OECD Economies, Standard of Living, UK Economy, 2011-06-20T19:13:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/structural-unemployment-in-the-uk-insights-for-2011 http://www.tutor2u.net/blog/index.php/economics/comments/structural-unemployment-in-the-uk-insights-for-2011#When:14:17:01Z The CBI has just published the first in a series of reports into the UK labour market which are certainly useful for A2 economists and their teachers.  According to the CBI, the analysis reveals “deep-seated structural problems which will not be solved by a return to economic growth alone.”.  The supporting website for this new research project is here.  Some great data visualisation tools on the UK labour market are provided too - here is an example. A2 Macro, Labour Market, Teaching of Economics, Digital Learning, UK Economy, Regional Economics, Unemployment, 2011-06-13T14:17:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/chinese-inward-investment-in-the-london-property-market http://www.tutor2u.net/blog/index.php/economics/comments/chinese-inward-investment-in-the-london-property-market#When:08:40:01Z In mainland China, authorities have put restrictions on property speculators to dampen the market, while in Hong Kong prices have risen by 70% in less than two years. But the 25% depreciation of sterling over the last two years makes the London property market a real draw for property investors from China. Sky News reports that one in three of buyers of new properties in London come from China and Hong Kong, mainly in the £400,000 - £1mn bracket, either seeking accommodation for their children studying in London or simply an investment. If - or when - the sterling/dollar exchange rate recovers, their return will be enhanced by the increased return they could get when they take their money out of the UK market again. A2 Macro, AS Macro, Emerging Economies, China Economy, Exchange Rates, Housing Economics, Poverty and Inequality, Market Equilibrium and Price, Price Mechanism in Action, Teaching of Economics, UK Economy, Regional Economics, London Economy, 2011-06-12T08:40:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/shaping-the-future-blanchflower-on-the-uk-economy http://www.tutor2u.net/blog/index.php/economics/comments/shaping-the-future-blanchflower-on-the-uk-economy#When:10:36:00Z A summer hat tip to the economics team at Millfield School for flagging up what looks to be a tremendous resource for students wanting to deepen their understanding of UK macro ahead of the June 2011 papers. They attended an excellent economics lecture at Exeter university a couple of weeks ago that is now available on their website. Here’s the link It was given by Professor David (Danny) Blanchflower (Ex- MPC member) on the UK economy during the banking crisis, its current economic state and its future prospects - ideal for A2 students ahead of their macro paper and for AS students now that they have completed their exams. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Teaching of Economics, UK Economy, 2011-06-07T10:36:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/macro-revision-putting-things-in-context http://www.tutor2u.net/blog/index.php/economics/comments/macro-revision-putting-things-in-context#When:18:43:00Z I always ask of my students that they try to put policy issues and decisions into some kind of context. The effective use of context - either in a domestic or external setting or using recent history as a guide can greatly improve evaluation marks in exam essays. Our aim in a revision session today was to build some of that context with respect to some of the key issues facing the UK economy. A starting point was the impact of the recession and how this is shaping the strength and pattern of recovery as we head through 2011 and into 2012. As befits an open economy heavily integrated into the European and global economic and financial system, many key recent developments on growth, jobs, inflation and trade are impacted by external demand and supply-side shocks and headwinds. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Cycles and Shocks, Economic Growth, Teaching of Economics, UK Economy, 2011-05-25T18:43:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/as-economics-revision-supply-side-policies http://www.tutor2u.net/blog/index.php/economics/comments/as-economics-revision-supply-side-policies#When:07:00:00Z Here is a streamed presentation of a revision talk on the economics of supply-side policies. The Unit 2 macro syllabus places a heavy emphasis on the supply-side as a driver of economic growth, improved trade balances as a better trade-off between unemployment and inflation. Make sure that you are secure on the main supply-side policy approaches and also the impact of such policies on LRAS. You ought to be aware too of some of the limitations of supply-side policies - and the importance of having a sufficiently high level of aggregate demand. I have linked below to some revision blogs on supply-side topics. Revision presentation on supply-side policies AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, OCR AS Economics Unit F582, AS Macro, Macroeconomic Policies, Supply-side policies, UK Economy, 2011-05-25T07:00:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-key-term-demand-pull-inflation http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-key-term-demand-pull-inflation#When:21:48:00Z Demand pull inflation occurs when aggregate demand and output is growing at an unsustainable rate leading to increased pressure on scarce resources and a positive output gap.  When there is excess demand in the economy, producers are able to raise their prices and achieve bigger profit margins because they know that demand is running ahead of supply. Typically, demand-pull inflation becomes a threat when an economy has experienced a strong boom with GDP rising faster than the long run trend growth of potential GDP. Demand-pull inflation is likely when there is full employment of resources and aggregate demand is increasing at a time when SRAS is inelastic. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Cycles and Shocks, Inflation and Deflation, UK Economy, 2011-05-24T21:48:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-key-term-inflation http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-key-term-inflation#When:20:10:00Z Inflation is a sustained increase in the general price level leading to a fall in the purchasing power of money. The rate of inflation is measured by the annual percentage change in consumer prices. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Cycles and Shocks, Inflation and Deflation, Macroeconomic Policies, UK Economy, 2011-05-24T20:10:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-key-term-economic-recovery http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-key-term-economic-recovery#When:21:44:00Z A recovery occurs when real national output picks up from the trough reached at the low point of the recession. The pace of recovery depends in part on how quickly AD starts to rise after a downturn. And, the extent to which producers raise output and rebuild their stock levels in anticipation of a rise in demand. The state of business confidence plays a key role here. Any recovery in production might be subdued if businesses anticipate that a recovery will be only temporary or weak in scale. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Cycles and Shocks, Labour Market, UK Economy, Unemployment, 2011-05-23T21:44:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-key-term-recession http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-key-term-recession#When:21:29:00Z A recession is a hard-landing and means a fall in the level of real national output i.e. a period when the rate of growth is negative, leading to a contraction in employment, incomes and profits.  There is in fact more than one definition and measurement of a recession. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Cycles and Shocks, Economic Growth, Macroeconomic Policies, OECD Economies, Greece Economy, UK Economy, 2011-05-23T21:29:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/revision-the-output-gap http://www.tutor2u.net/blog/index.php/economics/comments/revision-the-output-gap#When:08:39:01Z How much spare capacity does an economy have to meet a rise in demand? How close is an economy to operating at its productive potential? Has the recession damaged the economy’s productive potential? These sorts of questions all link to an important concept – the output gap. The output gap is the difference between the actual level of national output and its potential level and is usually expressed as a percentage of the level of potential output. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, A2 Macro, AS Macro, Cycles and Shocks, Aggregate Supply, Macroeconomic Policies, UK Economy, Unemployment, 2011-05-23T08:39:01+00:00