Data Flashcards
UK Economic Fiscal Policy for Expansionary Fiscal Policy linked to COVID
Increase in healthcare spending, wage subsidies, welfare spending, VAT cuts and business rates exemptions in order to increase growth, reduce unemployment and avoid deflation
Fall in taxation
But Demand-Pull Inflation has occurred and a massive budget deficit + national debt
UK Economic Fiscal Policy for Contractionary Fiscal Policy
Increase direct taxes such as income, corporation and windfall taxes to reduce inflation, budget deficits, national debt and flexibility for EPP
But demand-side shocks, worsened cost of living, income inequality
Privatisation of Royal Mail
2013, raised £2 billion
Done to improve competitiveness
HS2
Investing £55bn connecting London, Leeds, Manchester, East and West Midlands and South Yorkshire
Increase in labour productivity and run up to 18 trains an hour
Carry over 300,000 people every day and could boost the economy by £!5 billion every year
Potentially lead to the creation of 400,000 jobs indirectly
Extra Funding for NHS
£20bn for NHS in 2018 by 2023
Funding will increase by around £4bn for the next 5 years
Hyperinflation in Venezuela
Reached excess of 1,500,000% in 2018
Hurt animal spirits, reducing investment
Zimbabwe in 2008
Prices of goods were doubling every day in 2008
Hit inflation rate of 79 billion %
Unemployment reached 80%
Caused by QE happening for too long
Deflation in Japan
In 1990s
Tight monetary policy, ageing population and falling asset prices
In 2016 average price fell by 0.5%
Government response to 2008
Expansionary Fiscal Policy - Cut VAT to 15% and debt increased to 75% of GDP in 2010, 86% of GDP in 2018
Quantitive Easing
Turkey Inflation Rate
80%
Argentina Inflation Rate
110.5%
UK Inflation
10.1%
UK Annual Growth
4.1%
UK Forecast Growth
-0.2%
UK Unemployment Rate
3.9%
