The possibility of recession in the UK, the USA and Europe has attracted a great deal of media attention and in this podcast Andy Beharrell considers whether there is any real evidence of recession. The podcast considers the definition of recession, the causes of recession and the different approaches taken by governments to try to keep their economies out of recession. While the UK and Europe have adopted essentially rules-based policy approaches, the USA has taken a more interventionist and discretionary approach with a significant loosening of both monetary and fiscal policy.
Tag: exports
Large areas of land in the former Soviet Union and Eastern Europe are lying uncultivated due to export barriers and tariffs. Given the recent rapid rise in food prices, this fallow land (estimated to be around 23 million hectares) could help to reduce upward pressure on food prices.
Bread basket that is left to grow weeds Times Online (12/3/08)
Questions
| 1. | Identify three different forms of protectionism. |
| 2. | Explain why the land identified in the article has remained uncultivated. |
| 3. | Discuss the arguments for and against these countries reducing tariffs on food. |
The article linked to below is an extract (printed in the Guardian) from a new book by Dan Atkinson and Larry Elliott (economics editor for the Guardian). The introduction to the article summarises its theme quite effectively:
“We don’t manufacture anything any more. Most of the world won’t buy our records or watch our films. Only our gift of the gab is keeping Britain’s economy ticking over. But how long can the hot air last, ask Larry Elliott and Dan Atkinson “
Talk is cheap Guardian (18/5/07)
Questions |
|
| 1. | Explain the underlying trade performance of the UK in recent years for (a) trade in goods and (b) trade in services. |
| 2. | “Labour believes Britain is at the cutting edge of the knowledge economy and that Britain’s well-educated (sic), highly skilled (sic) and entrepreneurial (sic) workers are ready to kick German, American, Japanese and Chinese butt all round the global village.” Discuss the extent to which this is true. |
| 3. | Assess the extent to which the theory of comparative advantage can help explain the differences in trade performance outlined in the article. |