My Take on Econ

 Elizabeth Truss, the new PM and Kwasi Kwarteng, the new chancellor released a “mini budget” last Friday, and there’s a lot to talk about. ·          What was in the mini budget ·          What were/will be its effects ·          My opinions on the mini budget The mini budget has had a drastic, negative impact on the economy within a week of its release and within a month of the Truss government coming to power. So, what is it all about. Key points The mini budget has come with drastic tax cuts, the largest in the UK since 1972. In terms of income tax [1] . The basic tax rate (for earnings between £12,571 to £50,270) will be cut by 1%, from 20% to 19% in April 2023 and the top bracket for earnings over £150,000, 45% will be removed, and the highest rate of tax will be 40% for earnings over £50,270. The removal of which has been cancelled. Additionall...

In this blog, I will be covering: ·          Why prices are rising ·          What should the government/ central bank do? Inflation is the general increase of prices in an economy, typically shown by a rise in the consumer price index (CPI). CPI is the measure of the change in the price of consumer goods weighted by goods and services purchased by households, CPIH is CPI plus housing costs. In the past 12 months up to June 2022, CPIH has increased by 8.2%. This means that consumer goods in June 2022 are 8.2% more expensive than they were last year, effectively reducing the real value of money. Inflation can be caused by many things: a reduction in short-run aggregate supply (SRAS) [1] and/or an increase in aggregate demand (AD), an increase in the money supply (according to Fischer’s equation MV=PT or MV=PQ) or a change in foreign exchange rates (depending on whether the country is a net exporter or ...

 Firstly, I have finished my exams now and will be returning to my normal schedule. And secondly, tomorrow marks my blog’s 1 st birthday, it has been a brilliant year for sharing my take on economics with all of you and I am glad to say that it has been an enlightening journey writing this blog and I hope that it has provided a certain degree of educational value to all of you. Without further ado, let’s get onto today’s controversial topic, bitcoin. I will be discussing what bitcoin is, whether it should be considered a currency, how it has accumulated its value, and why it is volatile. Bitcoin is considered the “poster boy” for cryptocurrencies, this is on account of its large trading volume, price (at the time of writing this blog, (29/06) the price is £16,543) and fame. Bitcoin is considered by some, “the future of money”, this is because the “currency” itself is encrypted (hence “crypto”-currency) and completely online allowing for a reduction of frictional costs (the cos...

Quick introduction before I get into it. So this was my essay for an essay competition with the title written above and I was quite happy with the methods I mentioned below so I am choosing to share this with my readers. The FCDO has not yet announced the winner, therefore this is a disclaimer that I was and still am the author of this essay, I wrote this in late January and early February and am posting it on the 20th of May because I need to revise for my exams.  Speaking of exams, I will not be posting any more content on this page until they are finished in roughly 4 weeks It is crucial to economically empower women and girls in all of their struggles in the world, especially in emerging and developing nations. This is because of the multitude of challenges that they face on a daily basis, with their potential being severed by being forced to remain a housewife without sufficient funding to begin a venture or pursue higher education to unlock their boundless potential only 47% ...