MACROECONOMICS TOPICS

Is Keynes influencing politics today

Next Saturday I am taking some of my students to see Robert Skidelsky talk about John Maynard Keynes at the Cheltenham Literature festival. No doubt it will be a fascinating talk.
This video shows Peter Clarke and Robert Skidelsky talking about how they believe Keynes economic philosophy is continuing to influence today’s political scene. It could make an interesting starter looking at how Keynes theories is affecting todays politics.

Are we becoming a nation of savers?

The savings ratio is expected to rise again when figures are released this week. The graph shows the savings ratio fell as borrowing soared, however as the credit crunch began to bite the ratio rose as we started to save more when consumer confidence fell.

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Graduates face a tough job market

Is this what the job market has come to?

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Q&A on spending cuts

Talk of cutting government spending seems to be almost a daily occurrence in the national newspapers at the moment. This BBC article makes a good read for students to help them find out more on what might be proposed and why it needs to happen.

Does money really make the world go round?

This really links well with Innes’ mnemonic today. Innes looked at why GDP is not the best measure of standard of living. So does rising national wealth really make peoples lives better?

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More interactive inflation data

The Consumer Price Index for August was announced yesterday as 1.6%, the lowest it has been since January 2005.
The RPI gave slightly cheerier news as it rose from -1.4% to -1.3. The Guardian has updated its interactive data on inflation.

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Cut spending or raise taxes?

The government have a lot to think about if they are to prevent what some economists are calling a possible double dip recession. However they must consider the future and the large debts that have already been accumulated. The Labour party see the way forward as maintaining spending and increasing taxes, one idea being the new 50% tax on earnings over £150,000. The Conservatives on the other hand think that the only way ahead is to cut government spending.

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Continuing concerns over NEETs

16-18 years olds not in education, employment or training, otherwise known as NEETs are continuing to rise in numbers. In Gloucestershire there are now 599 NEETs a rise of 14% on last year. The West Midlands has the largest number of NEETs in the UK.

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Where did all the money go?

Another fantastic interactive guide, this time from the BBC. Since the markets began to tumble in 2008, governments around the world have spent almost $11 trillion bailing out failing banks and trying to repair the financial system. This interactive guide shows where the money went and what it means for the tax payer.

Economy set to benefit from England’s World Cup qualification

Few of us could have missed the fact that this week the England football team qualified for next years World Cup in South Africa with a 5-1 win against Croatia. What you may not realise is that this will benefit the UK economy greatly. According to the British Retail Consortium England’s qualification will benefit the UK economy to the tune of £1bn. 

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Winners and losers of the car scrappage scheme

New car registrations were up 2.4% in July this year, showing the scrappage scheme is finally starting show its effects on the car industry. This is the first increase since April 2008.

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Cash for gold

If, like me, you found yourself watching far too much daytime TV over the holidays, you may have noticed advert after advert imploring you to send your unwanted gold (even teeth!) to a company in return for cash. Interest in companies like this has soared during the recession as people struggle to cope. H. Samuel has just entered the market, hoping their recognised brand name will entice customers. Can any of your pupils think of other industries which will do well during a recession?

25 per cent unemployment in the Canary Islands

Spain is an interesting economy for GCSE students to look at. In Spain tourism accounts for 10% of gross national product and one in eight jobs. Construction is also a very important industry. And both sectors are now struggling with the pain of recession.

Many hotels have temporarily closed even during the summer season and the bars, restaurants, hire cars and airports are being affected by the downturn in demand. Economists have a term for this - a negative multiplier effect.

This BBC news video looks at the Canary Islands where one person in four is unemployed (an unemployment rate of 25% is nearly four times the jobless rate we have here in the UK).

Is saving back in fashion?

How many of us put money into our piggy banks or a bank account, saving for a raining day? Well data released this week suggests that more people are doing this and that the savings ratio is set to rise.

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Great new resource from the OECD

Trawling through the BBC website on Thursday evening I came across an absolute gem. How often do we want interesting data to use with our classes? Well I think I have found an answer! The new online tool OECD Factbook eXplorer.

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Mnemonic Monday – Factors that shift demand

One of the most important skills at GCSE Economics is to be able to identify factors which shift the demand and supply curves, especially in the OCR paper where an almost identical 12 mark question appears every year without fail.  Here is a check-list of factors which will shift the demand curve ( and yes… you’ve guessed it - next week there will be a mnemonic on factors leading to a shift in the supply curve)

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Xbox Project Natal – Competition revision

The 2009 OCR case study is likely to have a number of questions on competition. I noticed Microsoft’s new fully hands free control system in the news and thought it was a fantastic example of using innovation to compete. Press read more for two BBC videos of the new system and GCSE style questions on competition for revision.

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Q&A - UK Unemployment

How many more will lose their jobs in this recession?  Retiring Monetary Policy Committee member David Blanchflower predicts at least one million more people will lose their jobs before unemployment peaks.

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