Nobody downloaded yet

Examine and assess the role of the government in managing the UK economy - Essay Example

Comments (0) Cite this document
The state of commercial affairs in the country is massive and financial sector is highly developed. The economic system of the country is free market in nature, where public as well as private sector…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.1% of users find it useful
Examine and assess the role of the government in managing the UK economy
Read TextPreview

Extract of sample "Examine and assess the role of the government in managing the UK economy"

Download file to see previous pages government in determining long-term success of the country. The economy of U.K. has faced several financial crunches since World War II.
It is claimed by some researchers that financial crisis during 2008 in U.K. and other Western nations was caused primarily due to deregulation of financial markets, that had significantly gained speed in these nations 1980 onwards (Trading Economics, 2014). The policy deregulation had drastically lowered control of the government authorities over financial markets of respective economies. Lower state control in the monetary financial market generated certain market exuberances. The real estate sector investments in these economies were made for speculative purposes, which finally generated the property price bubble. Several banks collapsed due to failure of unproductive investment projects, thereby resulting in the recession in 2008; this was because aggregate money supply in the economy had fallen in these nations.
During the recession, as aggregate supply of money in U.K. had fallen, degree of productivity in the economy had declined. Lower level of production of several goods and services had greatly increased the level of unemployment in the country.
It can be observed from the above graph that the extent of inflation in U.K. had astonishingly increased during the recession in 2008. This was due to expansionary, monetary as well as fiscal policies adopted by regulating authorities of the country at that point of time (Hirsch, 2008). The authorities had implemented these polices for stimulating the depressed market of U.K.
In order to maintain welfare of the European economy during recession, its government authorities had adopted expansionary fiscal policies by increasing expenditure in the economy and lowering tax rates so as to enhance employment and output level of the country. Figure 4 in the Appendix shows the way in which fiscal policies attempt to revive an economy from the state of ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Examine and assess the role of the government in managing the UK Essay”, n.d.)
Examine and assess the role of the government in managing the UK Essay. Retrieved from
(Examine and Assess the Role of the Government in Managing the UK Essay)
Examine and Assess the Role of the Government in Managing the UK Essay.
“Examine and Assess the Role of the Government in Managing the UK Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Examine and assess the role of the government in managing the UK economy

Government role in a market economy

...are concerned (Aikins, 2009). What is most important is the fact that any government would not be pushed to bring upon changes if there is no accountability sought for within the ranks. The top management domains within any organization would be pushed immensely if the government is proactive and willing to offer more than is asked for. However this is hardly the case and there are a number of misgivings if seen within the corrective settings. It is a fact that there can never really be a free market economy. This is because the hold of the government on the market regimes will remain no matter what happens. The government wants to take...
4 Pages(1000 words)Essay

The Government and Economy

...moral philosophy was that the ultimate or vital evaluator of all creation and utilization; that is, the individual process, as it was assessed, analyzed and synthesized on the grounds of moral philosophy, was reviewed to be the tribunal of, or associated to the last resort for verdict or ruling upon the economic process. This has proceeded to the most certain or applicable perspective or view of nineteenth-century political economy. This is as the European countries are concerned. Speaking figuratively, economists play a center role with regards to what was laid firth by Adam Smith (Jewell). Apostolic succession that has been presented with regards to the social philosophy from Adam...
7 Pages(1750 words)Term Paper

Role of Government in Economy

...?Role of Government in Economy During the early days of American history, the founding fathers of the country had a lot of challenges to face and most important of which was keeping the country united and ensuring the survival of the country. The government and the political leaders did not want to take any risk, particularly in economic affairs because back then the economy of the country was based on the industries set up by a small number of investors and it was imperative to ensure the stability of the private sector, therefore the federal government only got involved in transportation sector. Laissez-faire doctrine was generally accepted by all the political leaders of that time and the role of the government was limited... and...
9 Pages(2250 words)Essay

Governments Role In Managing An Inflationary Economy

...Government’s Role In Managing An Inflationary Economy Introduction Inflation is an economic phenomenon in which the prices of all commodities increase while the value of money decreases. In other words, in an economy with higher inflation rates people, especially the poor and middle-class people struggle to find enough money for meeting their expenses. Both low inflation and high inflation rates are equally dangerous. Higher inflation rates make ordinary people’s life difficult because of higher prices of commodities whereas low inflation rate results in output loss, unemployment and distorted investment and consumption decisions. Below 5 or 6 percent...
3 Pages(750 words)Essay

Inflation Control by Government of UK Economy

...industry skill requirements. (Argy, 2005) Furthermore, the government's highly interventionist approach has significantly reduced trade-union bargaining power and increased competition in the product market. Relating this to inflation, potential cost-push pressure in price increases is eased and greater movements of relative wages are permitted. These factors have also inculcated better wage and price disciplines among employers. (Argy, 2005) Conclusion Given the United Kingdom case, it can be concluded that a well-managed policy mix is crucial to attain sustainable growth with moderate inflation. Monetary policies and fiscal reforms play an important role in honing the...
8 Pages(2000 words)Essay

Role of Government in the Economy

...with the intention of sustaining the continuous economic growth; as well as providing employment and ensuring the stability of the prices of good and services. This means that in the US, the government has an involvement in the acceleration of the economy’s growth rate through the adjustment of such distributions. Other factors include the spending of funds and tax rates through the government management of money supply with the application of control to these monetary policies. Although having said this, it does not necessarily imply that the term would indicate the complete control on economic activities, rather, the term only suggests how the...
6 Pages(1500 words)Essay

Government Impact on Economy

... Unemployment is one of the serious economic problems that any economy tries to deal with. This is also one of the reasons why full employment is always included in the economic goals of any administration. The government, through its monetary and fiscal policies, is thinking ways on how to achieve full employment or at least lower the unemployment rate each year. The role of the government in the employment environment is very evident but the real question here is how much role should the government play? Some economists, such as William McChesney Martin, view the economy as inherently unstable while others, such as...
1 Pages(250 words)Research Paper

Government & The Economy

...Government & The Economy One can see that inequality affects world nations but the general assumption is that developed nations are safe from the same. But a nation’s status (based upon development) cannot be considered as an apt yardstick to measure inequality. On the other side, successful implementation and follow-up work on innovative policies can reduce inequality in the society. Within this scenario, the current problem of inequality faced by the United States is deeply rooted in its economic policies. To be specific, Thesis statement: The grass-root level reasons behind inequality within the United States are cheap labor from Asia, unreasonable exchange rates, outsourcing, corporate greed, illegal...
8 Pages(2000 words)Essay

UK economy These industries experienced a set back and various firms operating in these industries came to an end. On the other hand there have been increase in the demand of the services and this has led to flourishing service sector. The service sector businesses that have experienced growth in Britain include the banking and the insurance sector. After the 1970s the unemployment rate of Britain continued to increase and organizations were experiencing several problems with the trade unions. In the period of 1980s, the conditions of the economy continued to worsen even when the government had adopted deflationary measures to help the economy of Britain (Odriscoll, 2008). During the...
3 Pages(750 words)Essay

Government Managing the Economy

...GOVERNMENT MANAGEMENT OF THE ECONOMY The government plays a vital role in the management of the economy through a number of strategies that focus on economic stability. A form of economy in which the government controls major aspects of the economy is referred to as the command economy. In such an economy, the government decides on what to produce, how much to produce, techniques to be used in the production process as well as the means of production to be applied (Kennedy, 2008). One of the roles that...
1 Pages(250 words)Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Examine and assess the role of the government in managing the UK economy for FREE!

Contact Us