Economics in the News

The Working Poor

2012-02-10T09:17:38+00:00

Superb Newsnight last night that covers: - the working poor - the market failure of income inequality - the abuse of monopsony power by supermarkets - the government failure of the National Minimum Wage vs the Living Wage - the burden on the tax payer of the working poor Watch it here…

Martin Wolf on Global Shocks

2012-02-10T09:13:47+00:00

Some notes from the recent BBC analysis programme on the global crisis presented by Martin Wolf in which spoke to a number of

Stephanie Flanders explains Quantitative Easing in 60 seconds

2012-02-09T22:22:21+00:00

This has to be amongst the best 60 seconds of Economics you’ll ever see on television. The superb Stephanie Flanders takes a leaf out of the RSA playbook to explain the basic theory behind quantitative easing. Wonderful!!

econoMAX - latest edition now available

2012-02-09T12:27:31+00:00

The latest edition of econoMAX, our digital magazine for A Level Economics students and teachers, is now available to subscribers on the econoMAX website. Details of the latest articles below. School / college subscriptions to econoMAX remain at just £50 per year (for the 7th year running!) - your subscription allows whole-school access and distribution of econoMAX articles, including the entire archive dating back to 2004. You can order your subscription to econoMAX here.

A backward step on the Maldives’ road to democracy?

2012-02-08T21:39:34+00:00

In development economics one of the issues that can often be a barrier to a country’s development is political instability, and it looks like the Maldives will be my case study this year. Read on to find out why

Competitiveness

2012-02-08T19:24:22+00:00

A useful entry on the Bond Vigilantes blog on competiveness.

Teaching Economics: A Perspective from the Classroom

2012-02-07T19:51:33+00:00

I headed to the Bank of England today to a conference organised by Diane Coyle (Enlightenment Economics) and supported by the Bank and the Government Economic Service. All of the sessions were full of interest and I will blog on some of the themes a little later on. For colleagues who would like to see the slides from my short talk please click on the link below

China bans its airlines from paying EU carbon tax

2012-02-06T05:52:33+00:00

On 1st January this year, the EU introduced an Emissions Trading Scheme (ETS) which levies a charge on flights in EU airspace based on carbon emissions. They estimate that this will add between 2 and 12 euros to flight tickets. Airlines are required to purchase emissions permits, like utilities and heavy industry in the EU, and airlines that do not comply face fines of 100 euros for each tonne of carbon dioxide emitted for which they have not surrendered allowances. In the case of persistent...

Teaching Vacancy - Economics (Part-time) at John Lyon School (Harrow)

2012-02-05T20:48:36+00:00

Many thanks to Stuart Foster for pointing out this nice part-time opportunity for a tutor2u economics teacher to join the thriving Economics department at John Lyon School. Need to move quickly on this one folks!

Teaching Vacancy - HOD Economics and Business Studies - City of London Freemen’s School

2012-02-05T20:16:27+00:00

Many thanks to Penny Brooks for letting us have news of this terrific HOD role for Economics/Business Studies in the beautiful Surrey countryside…

Economics and Business News Quiz 6 February

2012-02-05T19:37:40+00:00

Here is our weekly ten question quiz on economics and business in the news powered by Zondle. See who can get the highest score on the Space Destroyer game. Just register for free to try the quiz

Daniel Kahneman on decision-making

2012-02-05T18:49:37+00:00

Here is a quick link to a guest blog on the Economist website provided by Daniel Kahneman - a handy overview of some of his key insights concerning psychological explanations for departures from rationality. Follow this link

Unit 3 Micro: Video Resources on Carbon Taxation

2012-02-05T08:49:45+00:00

The crucial issue of how best to tackle climate change and make significant progress towards a low-carbon economy is one that gives students tremendous opportunities to hone their analysis and evaluation skills. A few weeks ago the Australian government was successful in getting through the Senate proposals for a new carbon tax and in this blog we link to some excellent video reports on the background to this decision.

Russia’s monopoly power over gas supplies

2012-02-05T08:47:23+00:00

It has been a bit chilly in the UK for the last few days, but nothing compared to the temperatures as low as -35 which have hit parts of central and eastern Europe. Of course, they are used to far colder winters than us, and have different ways of dealing with the weather, but reliance on gas supplies from Russia for the majority of their heating fuel leaves countries including Bulgaria, Serbia and Bosnia vulnerable to disruption in that supply.

Unit 1 Micro: Winning the War on Deforestation

2012-02-05T08:18:52+00:00

Justin Rowlatt from the BBC has been investigating some of the remarkable progress being made in controlling deforestation in Brazil. The battle focuses on an area known as the “arc of destruction” and the video reports here show the impact of a government making a clear commitment to tackling the issue and backing it up with force and with incentives.

Unit 3 Micro: Richard Wilkinson on Inequality and Economic Harm

2012-02-05T08:05:36+00:00

I have been using this talk given at TED 2011 by Richard Wilkinson when teaching the topic of poverty and inequality and the risks that a growing chasm between low and high income groups can have for society and economic performance. Students and teachers familiar with the work of Pickett and Wilkinson and their recent book “The Spirit Level” will know well the approach that these authors take. They use published data on inequality and link to wide differences in a range of economic and...

Unit 1 Micro: The Facebook Floatation

2012-02-03T16:04:24+00:00

Is the business truly worth the astounding estimated market value when Facebook finally completes an Initial Public Offering? Will profit be paramount or will Facebook have other key objectives beyond the bottom line? Can the explosive growth of the business be maintained or will concerns about online privacy act as a major drag on revenues and profits? The selection of news videos on proposals for Facebook provide some interesting background and asks whether Facebook can maintain their...

Teaching Vacancy - HOD Economics & Business Studies at Cheltenham College

2012-02-03T11:27:32+00:00

Many thanks to tutor2u’s Amy Chapman for letting us have first news of this teaching opportunity in the lovely spa town of Cheltenham.

Teaching Vacancy - Principal Teacher of Business Education - George Heriot’s School (Edinburgh)

2012-02-03T11:23:13+00:00

A wonderful opportunity to teach economics and business at George Heriot’s School in Edinburgh here…

U.S.A vs. China: A Visual Comparison of the World’s Largest Economies

2012-02-03T08:50:57+00:00

Another great infographic below, this time from mint.com, comparing all the important indicators (and the cost of a Big Mac) in an easy to digest graphic.

Richard Sennett on Cooperation

2012-02-02T18:05:26+00:00

How many strangers have you met today? Did you meet your 5-a-day stranger target? In an orchestra or dance-troup made up of a team of egos, how do they eventually perform to a high standard night after night? Here are some notes from a talk given at the RSA tonight by the renowned sociologist Richard Sennett on complex cooperation. I took many ideas from this in terms of considering teaching techniques and the use of language in the classroom. Richard Sennett was talking about some of the...

Trucks are the new way of measuring debt

2012-02-01T08:57:43+00:00

This is another excellent visualisation to put the scale of Europe’s debt crisis into some sort of perspective. Ben has already blogged about this kind of visualisation in terms of the US Budget here and US debt here.

Unit 2 Macro:Video Resources on Human Development Data

2012-01-31T22:10:37+00:00

Here is a short collection of short video resources on measuring human development with specific reference to the annual human development report and to progress in improving welfare in countries such as Kenya and Brazil

Unit 2 Macro: Growth and Development - Some Indicators

2012-01-31T01:18:08+00:00

The dictionary definition of ‘development’ is to improve, to progress, or to grow – but development is not just about growth! It is concerned with the improvement of human welfare within an economy, and so it encompasses concepts such as the standard of living, cultural identity and political freedom.

Teaching Vacancy - Economics & Business at Canford School

2012-01-30T08:43:20+00:00

Many thanks to Stephen Grant for letting us have details of an opportunity to teach in a thriving Economics & Business department in a quite simply stunning part of the country - Canford School. Applications need to be in by 1 February 2012, so move quickly!

Unit 2 Macro: Signs of Progress for Zimbabwe

2012-01-29T21:04:02+00:00

Just a few years ago the Zimbabwean economy was in collapse and meltdown and the political system on the point of disintegration under the disastrous handling of the dictator Robert Mugabe. When hyperinflation ruled, a sign once appeared in the toilets of a hotel in Harare, “please do not flush Zimbabwean dollars down the toilets” Three years since the creation of a coalition government, there are some tentative but notable signs of improvement. Inflation has fallen and the use of the US...

Unit 4 Macro: Why Making Stuff Creates More Jobs Than Healthcare Provision

2012-01-29T20:00:22+00:00

Last week my A2 students were asking what’s with all the fuss about manufacturing - services create jobs too! There’s a lot of talk about how the UK economy needs to focus more on its manufacturing industries as a means to get the economy out of its current predicament. We should be more competitive in what we produce, so that we can sell more overseas, boosting export revenues and creating jobs at the same time. Here’s a timely video from The New York Times, dissecting the iPhone and using it...

Teaching Vacancy - Economics at Salesian College

2012-01-29T11:25:30+00:00

Many thanks to David Good for alerting us to this Economics teaching vacancy with our friends in the department at Salesian College.

The impact of interest rates

2012-01-29T06:31:19+00:00

The US economy may have grown at nearly 3% in the last quarter of 2011, but the Federal Reserve announced last week that they do not expect to raise interest rates until the end of 2014. It has cut its growth forecast for 2012 from 2.5-2.9%, to 2-2.7%, and says that the economy faced “significant downside risks” and that it “expects to maintain a highly accommodative stance for monetary policy” - which I take to mean expansionary. This article about that interest rate decision is useful for...

Unit 4 Macro: Gains from Trade Liberalisation

2012-01-28T20:32:48+00:00

One way of expressing the gains from trade in goods and services between countries is to distinguish between the static gains from trade (i.e. improvements in allocative and productive efficiency) and the dynamic gains (the gains in welfare that occur over time from improved product quality, increased choice and a faster pace of innovative behaviour) Some of the broader gains from free trade are outlined below:

Economics and Business News Quiz - 29 January

2012-01-28T20:24:50+00:00

Here is a ten question quiz covering the economics and business news this week - have a go and see who can get the biggest distance using the javelin challenge. To play the full quiz just register for free on the Zondle site! Good luck

Unit 2 Macro: The Economic Disaster of Youth Unemployment

2012-01-28T16:45:27+00:00

The official figures show that there are now more than one million young people counted as unemployed in the UK although the precise scale of the jobless crisis is difficult to measure accurately. Nonetheless, it represents a fundamental economic, social and political problem and one that policy makers must address. In this video report from Al Jazeerah, Lawrence Lee visits Leeds to find a well qualified nineteen year old with good qualifications but who cannot afford to go to university and...

Micro Music Video featuring the Little Mermaid!

2012-01-27T21:44:06+00:00

We like this - in fact we like this a lot - virtually the whole of the micro course in three glorious minutes - enjoy Microeconomics Music Video- Econ World (featuring the Little Mermaid)

Economics Teaching: Diane Coyle on Economic Crises

2012-01-27T20:32:19+00:00

Diane Coyle gave a superb talk on the state of the economics profession and made a powerful case for curriculum reform in a talk in Germany earlier on this week. The transcript of the talk can be found here and this link takes you to the audio file. Excellent CPD for all of us in the school and college economics teaching community. It ends on a very positive note, not least the surge in student numbers and enthusiasm for our fantastic subject!

Unit 4 Macro: Focus on India - Comparative Advantage

2012-01-27T20:31:11+00:00

The concept os comparative advantage was possibly first introduced by David Ricardo in 1817. Comparative advantage exists when a country has a ‘margin of superiority’ in production i.e. where the marginal cost of production is lower. • Countries will usually specialise in and export products, which use intensively the factors inputs, which they are most abundantly endowed. • If each country specializes where they have an advantage, then total output can be increased leading to an improvement...

Unit 2 Macro: Focus on China - Trade and Growth

2012-01-27T15:11:46+00:00

Export demand can be an important driver of growth and development. For many years China has practiced export-led growth with exports accounting for over 40% of GDP. China ran a trade surplus with the rest of the world of around of $200 billion in 2009 – this looks huge, but is fairly modest as a share of GDP. The surplus on the balance of payment current account has diminished from over 10% of GDP in 2007 to less than 6% in each of 2010 and 2011. But China still has a structural trade / BoP...

Unit 2 Macro: Focus on China - Inflation

2012-01-26T21:28:28+00:00

The super-charged growth in China has brought about a rise in inflationary pressures and is a good example of the possible conflicts between rapid economic expansion and rising costs and prices. The Chinese government’s inflation target is 4% but inflation is a growing worry for the Chinese government – after some mild deflation in 2009 there has been acceleration in the consumer price index. Agricultural prices have been a key driver of inflation with food costs up 12% in the year to March...

Unit 2 Macro: Focus on China - Carbon Emissions and Growth

2012-01-26T21:18:23+00:00

Rapid economic growth in China has led to a sharp rise in C02 emissions per head of population and also electric power consumption per capita. Per capita emissions remain well below those of rich advanced nations but China is now committed to improving the sustainability of her economic growth and also in making big advances in researching, testing, developing and investing in clean energy technologies as a source of future exports. According to the 12th Five-year Plan (covering the years...

Unit 2 Macro: Focus on China - Per Capita Incomes

2012-01-26T21:07:18+00:00

Per capita incomes in China are rising though still low by advanced-nation levels. China ranks at 119 in terms of average incomes, according to World Bank data (per capita incomes, PPP adjusted). But China is now the biggest car market in the world and there has been a huge rise in the sales of luxury goods to China (these products have a strong income elasticity of demand). China wants to achieve a re-balancing of her growth – towards domestic consumption and away from exports. Another...

Unit 2 Macro: Focus on China - Changing Economic Structure

2012-01-26T20:56:59+00:00

China has experienced fast growth in the last twenty years, in the last decade; the increase in Chinese GDP has been seven times the rise in the GDP of Japan. China has a new growth target of 8% pa for the next five years – a downgrading of growth but still way in excess of normal trend growth for any of the advanced economies such as the UK, Germany and the United States. In 2000, China’s accounted for 7.1% of the world’s total GDP (in PPP terms). By 2015 China will have a 19% share of global...

Elasticity of Demand on Apple’s App Store

2012-01-26T20:40:53+00:00

As an Apple aficionado, I regularly visit the macrumors.com site to keep up to date with the latest news about my favourite computer company, so it was interesting to see this article today looking at the effect on revenue for app producers who put their apps ‘on sale’

Unit 4 Macro: Focus on India - World’s Cheapest Computer

2012-01-26T20:29:20+00:00

A few weeks ago came the announcement that an Indian business is finally set to launch the World’s cheapest tablet computer. This laptop device will sell for around 18 times less than the price of an iPad in London! How can a laptop be manufactured for less than $US 40?

Unit 4 Macro: Focus on India - Supply Side Issues

2012-01-25T19:15:32+00:00

The rapid growth of the India economy has been helped by her economy enjoying a number of supply-side advantages. That said there remain structural supply-side weaknesses that will limit her continued competitiveness and development. This blog looks at the plusses and the minuses.

Unit 2 Macro: Can China Stay Competitive

2012-01-25T18:07:29+00:00

This new five minute video report from the Financial Times is excellent on the competitive pressures facing many manufacturing businesses located in southern China. Wages are rising quickly and some manufacturing businesses have already moved either to lower-cost locations within the Chinese economy or to other countries such as Bangladesh and Indonesia. But there are alternative approaches and this video emphasises the decision that some manufacturers have made to stay put but instead to...

RES Annual Essay Competition for Students 2012

2012-01-25T08:54:00+00:00

The 2012 Royal Economic Society Essay Competition for students has been launched. Details below…

Unit 1 Micro: Can the UK Computer Games Industry Grow

2012-01-24T22:17:37+00:00

Britain is one of the world’s biggest exporters of creative products - from live TV shows and music to books, arts, architecture and films the economy has built up an enviable global reputation for excellence and a growing trade surplus to aid our balance of payments. Computer games falls squarely into this category but, according to TIGA - the trade association representing the UK’s games industry - unless there is renewed government support, the future of this sector is at risk. TIGA claims...

Unit 4 Macro: Focus on India - Economic Growth

2012-01-24T17:07:24+00:00

This is the first of a short series of blogs focusing on economic growth and development in the Indian economy, Our first blog provides some background data and study videos on India.

Teaching Vacancy - Economics at St Olave’s Orpington

2012-01-23T22:40:42+00:00

Five superb teaching opportunities in one night here on the Economics blog! Many thanks to John Greenwood for giving tutor2u first details of this vacancy at St Olave’s.

Teaching Vacancy - Economics at Tiffin School (PT)

2012-01-23T22:21:43+00:00

A part-time vacancy here at a school with a terrific reputation for Economics. Many thanks to tutor2u blogger Rob Earl for letting us have the details.

Teaching Vacancy - HOD Economics & Business at Culford School

2012-01-23T22:16:31+00:00

A HOD vacancy this time - many thanks to our colleagues at Culford School for letting us have first details of this opportunity:

Teaching Vacancy - Economics at Malvern College

2012-01-23T22:12:51+00:00

Another superb vacancy here - ideal for talented economics teachers who support T2U!

Teaching Vacancy - Economics at Kings College School Wimbledon

2012-01-23T22:07:22+00:00

These superb economics teaching opportunities keep on coming and here is another cracker - Kings College School in Wimbledon. Don’t for get to mention that you heard about it here on T2U!

Externalities in Action- TED Talk

2012-01-23T21:52:43+00:00

I’ve just found this fascinating video from the amazing TED website which is an excellent example to show how ‘the market’ can can be used to solve an external cost

Unit 3 Micro: 3D Printing and a Manufacturing Revolution

2012-01-23T16:56:38+00:00

Additive manufacturing or 3D printing is an emerging technology that takes product design data which provides a geometric representation of a product such as a pen and that data is then sent over to a machine that allows products to be manufactured ‘on the spot’ typically using additive materials in liquid or powder format. This TED talk from Lisa Harouni (co-founder of Digital Forming) looks at examples of intricately designed products made using this new and increasingly affordable...

Unit 2 Macro: Population Shift in China

2012-01-23T16:27:44+00:00

What happened in the UK in 1851, the United States in 1920 and in the World in 2008? These three years mark the estimated year when the size of a given urban population overtook the size of the rural population. And now China has reached this significant landmark. The Chinese Bureau for National Statistics reported recently that in 2011, the proportion of urban population reached 51.27 percent (1.3% higher than in 2010) with the urban population standing at 690.79 million persons, an increase...

Unit 2 Macro: Exporting to the Booming Chinese Economy

2012-01-23T14:47:32+00:00

Before you read this blog please have a look at another blog written by our good friend Mark Johnston from New Zealand. Students of China and the US economy will find it fascinating! There are good grounds for no longer calling China an emerging economy - it has arrived! The multiple significance of the rapidly-growing Chinese economy is plain for all to see but for Britain, only a small percentage of our exports of goods and services go there and this must change if Britain is to fully engage...

Video Resources on Rising Inequality

2012-01-23T10:24:14+00:00

In this blog entry we will be bringing together some short video resources that might be useful when teaching and studying the economics of inequality. Please do add some more resources using the comment box at the bottom and we can add them to the listing.

Unit 1 Micro: Illegal logging and the human cost

2012-01-23T07:43:53+00:00

This news report looks at the human cost of an example of the tragedy of the commons - illegal logging in the south Philippines which contributed to tens of deaths from the effects of flash flooding. Ecosystems and economic prospects are damaged at the same time because of failures in environmental management.

My favourite video on GDP

2012-01-23T02:45:55+00:00

Although it is focussed on the U.S economy, this five minute video is a cracker because it covers a number of issues about GDP that students find difficult to grasp, in an engaging way.

Unit 4 Macro: Money, Debt and the New World Order

2012-01-22T18:40:23+00:00

“All money these days is really a form of debt from somewhere else. We know now in 2012 that our debts cannot be repaid in full.” Philip Coggan from the Economist was on fine form at the LSE last week when he spoke to a packed audience in the new academic building on the subject of his latest book. When trust in the monetary system breaks down we are in a very difficult place and, in a wonderfully broad historical sweep Philip Coggan offered some revealing insights into what a reformed global...

Externalities in song

2012-01-22T16:05:24+00:00

I was listening to the radio this morning, and ‘Big Yellow Taxi’ was playing. This led me on to an interesting idea for thinking about externalities.

Externalities Cartoon

2012-01-22T15:43:39+00:00

KAL, The Economist’s cartoonist, has produced an excellent cartoon in the latest issue perfect for a discussion of a very topical externalities issue in North America. And one that has also been ‘causing tremors’ in the news over here too!

France and Flexible Employment

2012-01-22T10:03:05+00:00

This article could be useful as an illustration of the EU context in relation to employment in general, and flexible employment in particular. Attracting inward FDI is arguably a significant benefit of UK membership of the EU, and one of the advantages which the UK can offer compared to, say, France is relatively flexible employment laws.

Unit 4 Macro: Russia Joins the WTO

2012-01-22T09:50:52+00:00

I am using Russia’s entry to the World Trade Organisation in my teaching on international trade and development this term. It appear to be a significant moment for the global economy. Russia is the last member of the Group of 20 major economies to join, after China gained membership in 2001. Progress towards membership has been delayed by numerous geo-political issues not least the disputes with neighbouring Georgia. Joining the WTO involves making a commitment to the rules of the...

Unit 2 Macro: Living below the Breadline

2012-01-20T00:12:49+00:00

This article on the appalling depth of workless households in Liverpool is a reminder of the multiple aspects of relative poverty and economic/social exclusion. The causes of unemployment are complex - many are structural - but it is hard to draw much if any optimism from reading this article. By some estimates over one third of households in Liverpool have no one in work and second and third generation unemployment is not uncommon. This is a must article for students to read if they want a...

Cross curricular themes in Economics & Business Studies

2012-01-19T18:33:52+00:00

Since I started teaching, I have been interested to observe links between the subjects I teach at A Level – Economics and Business Studies – and other subjects students have studied at GCSE or A Level. Students love being asked to share knowledge from their other subjects; it surely helps reinforce learning and helps avoid subject material being compartmentalised. For Oxbridge calibre candidates, it helps them see beyond the syllabus and how our work relates to other subject areas. Cross...

Teaching Vacancy - HOD Economics at Harrow School

2012-01-19T10:27:23+00:00

Many thanks to our colleagues at Harrow School for alerting us to yet another top opportunity for tutor2u Economics teachers! Details below. Don’t forget to mention that you saw this on T2U!

Teaching vacancy - Economics & Business Studies, Reed’s School - Cobham, Surrey

2012-01-19T10:17:08+00:00

Due to growing numbers in both Economics & Business Studies at Reed’s School, we are looking for an additional teacher.

Teaching Vacancy - HOD Economics & Business at Bristol GS

2012-01-19T10:00:52+00:00

What an amazing week for top job opportunities on tutor2u for economics & business teachers. Don’t think we’ve ever had so many colleagues contacting us with superb teaching vacancies. Why advertise in TES when you can reach over 13,000 Economics & Business teachers direct? Here is the latest - a real belter - HOD of Econ & Business at Bristol Grammar School.

Man saves life by decreasing money supply!

2012-01-19T09:22:33+00:00

This is a story that I will use next time I am teaching about the money supply. What do you do when you are lost on a freezing cold mountain and desperately need some warmth?

Teaching vacancy - Economics & Business Studies at Bloxham School

2012-01-19T07:19:19+00:00

Details below of an economics & business teaching vacancy which is sure to interest many colleagues….

Unit 3 Micro: The Economics of Solar Subsidies

2012-01-18T22:15:53+00:00

This blog provides a link to a new prezi presentation on the economics of solar subsidies - I have been using it as part of my teaching on aspects of environmental economics for Unit 3 AQA but it might also be useful for unit 1 market failure. I have kept theoretical diagrams out of it and plan to build up relevant analytical concepts such as economies of scale, consumer subsidies, economic and social welfare, government failure et al on a normal whiteboard rather than embed them into the...

Petrol, tax, and the downward sloping demand curve.

2012-01-17T22:03:05+00:00

Nearly every country has a tax on petrol, although the amount varies widely. And given that the landed price of petrol is quite similar (see the graph below), it can be seen what effect the tax has on quantity demanded. The results are very much in line what economic theory would predict and there are also clear implications for countries that want to reduce petrol consumption.

Unit1 Micro: Processed Meat and Cancer Risk - Information Failure?

2012-01-17T21:55:28+00:00

I do my level best to avoid the processed meat aisles in the supermarkets - or at least the lower end of what is on offer (I remember once the 5pence sausage that was a guaranteed 2 per cent pork!). But perhaps excessive consumption of processed meats - much of which finds a way into the traditional Full-English might be doing people much more harm than good? Follow this BBC news report for more details.

Inflation - what’s up, what’s down and what’s going to happen next

2012-01-17T21:04:00+00:00

Just as the Monetary Policy Committee have been saying for a while, inflation is starting to fall back towards their target. The fall to 4.2% in December is rather sharper than expected, and is the biggest monthly fall since April 2009. With further falls almost certain in the next few months as the VAT rise and energy price hikes roll out of the 12-month figures, analysts have commented today that this will leave the opportunity for the MPC to inject further rounds of QE into the economy with...

Indicators of Financial Stability

2012-01-17T20:52:45+00:00

This mornng the Bank of England published a letter from the Governor to Andrew Tyrie MP, Chairman of the Treasury Select Committee which is discussing financial stability policy. The letter provides some simple indicators that might be used to help monitor financial stability.

Unit 1 Micro: Nano Technology and Energy Efficiency

2012-01-17T20:51:09+00:00

Today’s research in the labs can be the harbinger of terrific innovations that change the landscape of consumer product markets in the years ahead. The iPod Nano is a brand but the research behind nano-technology itself might bring about eye-watering improvements in the energy efficiency of devices that are part and parcel of our daily lives. This brief news report from Al Jazeerah looks at innovation in nano technologies and what might be around the corner. Researchers at IBM have created...

A Faustian Bargain

2012-01-17T17:16:59+00:00

A hat-tip to Emily Gladstone for pointing me in the direction of this article…useful for both economists and geographers, and illustrates the inter-disciplinary nature of the subjects.

Teaching Vacancy - Economics & Politics at Dulwich College

2012-01-17T10:09:05+00:00

Another fantastic teaching opportunity here to join the team at Dulwich College. Details below:

Unit 2 Macro: Videos on Productivity

2012-01-17T08:46:56+00:00

Here is a selection of short video clips that might be useful when teaching the economics of productivity as part of the AS macro course. I often start with the “Fast Hands” video clip (one minute only) because it raises all kinds of issues about division of labour and the quality of life of people who do these tasks. And the short 25 second clip on the world’s fastest hand is guaranteed to make a mark! If you have some other videos on productivity to share please leave a link in our comment...

Unit1 Micro: Can a minimum wage create jobs?

2012-01-17T00:02:34+00:00

Tim Harford has a piece in his regular column in the Financial Times which discusses some of the issues surrounding the minimum wage and whether a legal pay floor can actually create jobs. Here is the link

CPD - Using Twitter - a session at Tapton

2012-01-16T17:06:23+00:00

What a superb idea from Julia Wilkins at Tapton School near Sheffield to organise a CPD session for her colleagues on some of the ways in which Twitter can be used as a support for continuing professional development. She tweeted earlier in the day for people to join in and at the appointed hour (4.30pm) a stream of tweets became a torrent as colleagues from the twitterverse contributed ideas, views, links and resources. There were plenty of economics and business teachers providing an input...

Post-Easter 2012 Revision Workshops for A Level Economics

2012-01-16T10:30:33+00:00

TUESDAY 23 APRIL 2012 We are running a series of repeat revision workshops after Easter 2012 for AS & A2 Economics. Our venue is the stunning Vue Cinema at Westfield Stratford City - right at the heart of the London 2012 Olympics! We’ve scheduled four workshops - one each for: AS Microeconomics (Unit 1) AS Macroeconomics (Unit 2) A2 Microeconomics (Unit 3) A2 Macroeconomics (Unit 4) Each workshop will feature the 2011/12 workshop materials specifically designed by tutor2u to...

AS and A2 Economics Revision Workshops in Spring 2012 (update)

2012-01-16T07:35:24+00:00

The dates for our popular Unit 2 & Unit 4 Economics revision workshops in Spring 2012 are now confirmed: Provisional bookings for these revision workshops can now be made using the following form: The dates and locations are shown below:

Unit 3 Micro: World’s Largest Solar Plant Opens

2012-01-16T03:51:50+00:00

This autumn the world’s biggest solar plant power station opened in Spain. Comprising 600,000 parabolic mirrors, the Andasol 3 CSP plant is the size of 70 soccer fields and has 88km of piping. The economies of scale are huge and if solar power is going to work and be viable anywhere it is probably here or in North Africa.

Unit 2 Macro: Look Upwards to Find the next Downturn

2012-01-16T03:34:05+00:00

Correlation does not necessarily imply causation but analysts at Barclays Capital are worried that a surge in skyscraper construction in China and India might be a forward indicator of another burst of financial and economic distress. This report in the Independent covers their findings: “Clusters of building activity usually coincide with periods of easy credit, excessive optimism and rising land prices, which often occur before market corrections.” * India is scheduled to complete 14 new...

Economics at the Movies - Foods that Make Billions

2012-01-15T19:37:56+00:00

Here is a link to a you tube video from the BBC looking at the modern food business and the huge profits to be made from the breakfast cereal industry. Part of the series The Foods that Make Billions (cereals, bottled water and yoghurt) The Foods That Make Billions - Cereals Yoghurt

Using Infographics in the classroom

2012-01-15T18:17:08+00:00

We frequently use infographics in class to help pupils digest certain tricky concepts and to add some colour and spice to otherwise dry theory. 1/ This one brought some life to the key term discretionary income and how it changes over a lifetime 2/ I’ve been using this one for years to help students get to grips with inflation, the concept of weights, expenditure survey categories, basket of goods etc. 3/ Here’s another my A2 Micro students found when researching innovation, patents...

Unit 4 Macro: France loses her AAA credit rating

2012-01-15T14:36:24+00:00

It is perhaps a moment of more political than economic significance, but on Friday 13th January 2012 Standard and Poors, a leading credit rating agency announced that France was losing her triple A (AAA) credit rating for sovereign debt. It was part of a larger downgrading of government bonds among a sizeable chunk of Euro Zone countries, the argument being that plans to achieve deficit reduction lacked credibility. France was downgraded, S&P also lowered the long-term ratings on Austria,...

Unit 2 Macro: Frontier Markets - the New BRICS?

2012-01-15T11:30:20+00:00

Emma Wall has a piece in the Telegraph today about Frontier Markets - 25 countries that have stock markets but because of their size, inexperience or political instability do not yet qualify for “emerging market” status. These are higher risk markets for investors but target countries that are gradually becoming more open to trade and investment and which have high grown potential.

Unit 4 Macro: Piracy and Econ Development in Somalia

2012-01-15T10:23:28+00:00

A new year hat tip to Richard Coulthard from Handsworth Grammar School in Birmingham for spotting this BBC news article on the economic impact of piracy in Somalia. Richard comments that this is just what economic theory would predict after large increases in the money supply but from a quirky angle. Read: Somali piracy ‘boosts Puntland economy’ To access the Chatham House report from this which this news report is drawn, please click here

Beyond the Bike - The Importance of Remittances

2012-01-15T09:58:22+00:00

Joseph is 29 years old and makes a living selling vehicle parts in the dusty trucker town of Igawu in Southern Tanzania. When he approached me during my breakfast and flashed 2 fresh $100 bills, I was naturally interested to know where they came from. I offered him a ride north to find out…

Unit 4 Macro: Time to Re-Boot the British Economy

2012-01-14T21:52:49+00:00

This special blog in the Guardian from Professor Danny Quah of the London School of Economics is superb for Unit 4 students taking their papers in June 2012. in “The UK and the eurozone in the shifting global economy” Professor Quah focuses on many of the underlying difficulties in the UK economy. Digging deeper inside the trade data he finds that, focusing on the UK’s 50 largest trading partners in 2009: 56% of our exports go to the 10 slowest-growing economies in that group. We are missing...

Economics at the Movies - The Joy of Stats

2012-01-14T19:31:02+00:00

In this blog we provide links to official You Tube clips from the Joy of Stats programme made available by the Open University. Click below to view the selection

Economics Revision Workshops - Latest Availability

2012-01-14T16:55:20+00:00

The lovely tutor2u team often take calls in the office asking how many places are available on the various Economics revision workshops we run. So we thought we create a widget which shows you the latest seat availability! The details for the next series of revision workshops is shown below. It is updated every 5 minutes, so is a pretty up-to-date overview of the remaining places. The total for “seats” shows the difference between the contracted cinema screen capacity for...

Margin Call

2012-01-14T09:19:49+00:00

I’ve been looking forward to seeing this movie, which is finally released here in the UK…

Unit 3 Micro: Samsung and LG fined for price fixing

2012-01-13T17:12:40+00:00

As A2 microeconomists approach their Unit 3 exam, they need to make sure they have good examples to support their analytical theory and should therefore be interested in the news from South Korea where the antitrust regulator has fined Samsung Electronics and LG Electronics for conspiring to fix the prices of some appliances. The regulator said the two firms held secret meetings in 2008 and 2009 to agree on prices for washing machines, flat-panel TVs and laptop computers and has fined Samsung...

The future’s not so bright for Orange(s)?

2012-01-13T17:03:32+00:00

This week, the price of orange juice concentrate on the global market hit a record high, reaching $2.12 (£1.38) a pound (0.45kg).

Oligopolies in action

2012-01-13T16:08:35+00:00

Don’t you just love it when oligopolistic theory plays out in the real world: On Wednesday, EdF announced it was cutting gas prices by 5%. Thus began the price war with the strategic interdependence that exists in oligopolistic markets… British Gas also responded with a 5% cut (although craftily undercut EdF by saying it will be immediate, rather than EdF’s one which will take effect in February). SSE responded with its own price cut on Thursday… NPower announced their cut today on...