Client’s Name: Course: University 5 December 2013 UK Economy an Introduction Several major changes have taken place in the UK economy since 2007. The world was affected by recession in the year 2007 and this continued for a few good years. The UK economy was severely hit in the year 2007…
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"(Chosen country and period: Example: UK, 2007 to present), An Evaluation of the Macroeconomic Performance and Policy Responses,"
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Any government has the power to regulate the economy of a country and not only does it regulate the economy, it has a vital role to ensure that the economic condition remains stable. It is the responsibility of the government to ensure that all the aspects of economy maintain a stable level so that the country can grow and expand. Government regulates many things in an economy including inflation, exports and imports, prices of many vital commodities, and also property prices to a large extent. Government of England has entrusted the job of determining the monetary policy, in the hands of Bank of England. Bank of England looks into many other big issues. One of the most important issues is that of ensuring monetary stability in the economy, which can be achieved through a combination of stable prices of goods and services across the economy coupled with a low inflation level and level of confidence of the investors in the currency of the country. The Bank comes out with the monetary policy in order to ensure a certain key objectives like, delivering price stability with a low inflation level coupled with an objective to support the Government’s economic objectives of growth and employment. Price stability is taken care of, by the Government’s usual inflation target of 2%. ...
For example, any increases in oil prices is expected to feed through into inflation over the next few years, and the gap between the value of imports and exports is growing to record levels, prompting expectations of a decline in the value of sterling, which is a welcome sign for the exporters but will hit the importers, as they will have to shell out more money for importing their raw materials leading to a further increase in inflation. Any decision is taken after considering the condition of the whole economy and all sections of the society at large and there are several other methods to tackle the prices of properties, but it will always be better to increase the rates at a slower but steady pace, rather than giving a monetary shock. Rising Inflation, if not tackled properly and at the right time may create a cycle, wherein the inflation keeps rising due to no change in interest rates. Factors Influencing Property Prices in UK Assessing the price of a property is not an easy job, there are three main methods besides the economic factors that determine value, namely “Comparable Sales Method”, “Income Approach” and the “Cost Approach” (Property Valuation for Home Buyers), but these methods are just a tool for a prospective seller to determine the price of the house they are going to sell and this price definitely influences the price at, which the transaction actually takes place. Let us now analyze how the concept of value plays a role in determining the prices and what factors influence value. As mentioned in the article, value is subjective and differs from person to person. Value of a beautiful flat in a very posh locality can differ from person to person. Someone who likes to lead
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It is common knowledge, that macroeconomics is related to the big issues of the economy. It is the study of aggregate supply and aggregate demand. In order to achieve macroeconomic objectives, the government formulates certain policies. The policies designed by the UK government are primarily put into place to improve the working of the economy.
Macroeconomic Policy Objectives. All governments have aims and targets for their respective economies. These are referent to the aims and goals of the policy pursued by the government, which differ from macroeconomic instruments. They are the means for governments to achieve these macroeconomic aims.
The state's role in the economy has got reduced and nearly 2/3 rd of the Gross Domestic Product (GDP) in 2003 was contributed by the on-state sector. More labor is now employed in manufacturing and service sectors than in agriculture and this is a clear indication of economic development.
For example there are different types of cotton; jute, hides and skins are supplies to the producers of cotton textiles, gunny bags and shoes respectively. At the same time manufactured goods, which have been produced with the raw materials, are supplied to the consumers.
Others believe that tax cuts or tax rebates can help pull the economy out of a recession. The underlying causes are usually not singular in nature and recessions are generally the result of a few or several events that happen simultaneously (Schuh and Triest 1998).
There are circumstances that explain why the economy has remained weak and strong. For instance, consumer spending has been weak because its growth has been slow. There is only 1% growth of disposable income, and out of this, only 0.5% is allotted for consumer spending, 3% is allotted for savings and the rest is for other expenses.
The unemployment rate shot up from 5.2% in December 2007 to 7.9 percent in 2010. By 2011, it had risen to 8.5% and 8.8% in 2012 before it started going down rapidly in 2013 and by this year it was calculated at 6.2% of the economically active population. The U.K