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understanding the economy | economics for the lost

economics for the lost (by Andrew Brunton)

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economics for the lost (by Andrew Brunton)
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understanding the economy | economics for the lost | andrewbrunton.wordpress.com Reviews

https://andrewbrunton.wordpress.com

economics for the lost (by Andrew Brunton)

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1

are we nearly there yet? | understanding the economy

https://andrewbrunton.wordpress.com/are-we-nearly-there-yet

Economics for the lost. Are we nearly there yet? The credit crunch – is it nearly over? 8216;no’ is the answer. We still don’t know how big the problem is yet – ie how much bad debt is out there. Dunfermline Building Society is the latest casualty to ‘own up’. They have gone into commercial property loans, and commercial property prices have collapsed. The good news – we should see some signs of progress in 6 – 9 months. Get your wallet out in June 2010, it all has to be paid for. Enter your comment here.

2

Quantative Easing and your house price | understanding the economy

https://andrewbrunton.wordpress.com/quantative-easing-and-your-house-price

Economics for the lost. Quantative Easing and your house price. Will quantative easing affect your house price? Yes, it will. House prices have fallen because people lost confidence and couldn’t get mortgages. This has contributed to deflation. Gordon has been printing money to help ease the availability of credit. This means more money in the system, so mortgages should get easier to obtain. More mortgages means more demand, means prices stop falling. Leave a Reply Cancel reply. Enter your comment here.

3

difference between a recession and a depression | understanding the economy

https://andrewbrunton.wordpress.com/2008/12/16/difference-between-a-recession-and-a-depression

Economics for the lost. Laquo; and the answer is … more debt. 0% interest rates – what next? Difference between a recession and a depression. They are at it again. The media are asking if we are heading for a depression 1930’s style. What is a depression? What is a recession? Well, good question, because the definitions are not clear and agreed by all economists. There’s a surprise. Someone said, a recession is when your neighbour looses his job. A depression is when you loose yours. Small comfort. You a...

4

Inflation in 2009 | understanding the economy

https://andrewbrunton.wordpress.com/inflation-in-2009

Economics for the lost. Up, down, roundabout – that sums it up. Inflation forecast for 2009 is a complex animal, so won’t bore you with what is really happening. Suffice to say, inflation will drop until summer, with rpi inflation heading into deflation (nasty). It will then rise, and rise quite alarmingly. Oil prices shot up to $147 middle of last year and then collapsed from panic highs to panic lows. This reduces inflation (deflation) in first half of 2009. Leave a Reply Cancel reply. Inflation &#8211...

5

do interest rates work? | understanding the economy

https://andrewbrunton.wordpress.com/do-interest-rates-work

Economics for the lost. Do interest rates work? Yes, in that they make people change their behavior. No, in that you always get some of the wrong behaviour changes. Government can control taxes and expenditure. Bank of England can control interest rates. And that is just about it. Interest rates are a crude way of changing people’s behaviour. So crude, that they almost don’t work. Trouble is manufacturing needs are different from housing needs. Leave a Reply Cancel reply. Enter your comment here. Do inte...

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understanding the economy | economics for the lost

Economics for the lost. Inflation – where is it heading? Inflation is a funny old dog. We don’t want too much of it – we don’t like prices rising out of control. We don’t want deflation – falling prices surely not! Well, the issue with inflation rising too much is that we end up chasing our tail. Employees demand higher pay to meet growing costs. The entrepreneurial chancers add a bit for themselves – and the whole thing gets out of control. Deflation is another story. Tags: commentary on economy. When &...

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