Low Inflation in the UK

Since the Bank of England was given independence in 1997 UK inflation has been close to the government’s target of 2% +/-1. This is a remarkable improvement for the UK economy. Previously the UK economy suffered from consistently high inflation. Eg in 1979 inflation reached 25%. In 1992 inflation reached 11%. Reasons for low inflation are a matter of debate. The question is how long will this continue?

Economics

Fiscal Policy is the economic term that illustrates governments' behavior in raising funds in order to be able to finance governments' spending. Money can be raised by taxes, borrowing, or by user fees on social services.

GM-Chrysler Merger Would Hurt State Budget

Auto industry is bombarded with plant closures, job cuts and vanishing confidences. And with the potential GM-Chrysler merger, it is expected that the financial system of the entire state, not only the industry, would be greatly hurt.

Why the Penny Should be Retired

Do you know it costs MORE to make a penny, than the value of the penny itself? If you have been provoked to think, do something about it!

The Wave of Changing Demographics and the Need for an Intellectual Capital Insurance Policy

As populations age there will be fewer people providing the productivity and more people on the public receiving side of things. This poses a problem for many nations including the United States. Recently, our Online Think Tank considered this and a member William Sheridan mentioned the need for an Intellectual Capital Insurance Policy for Canada and the US.

Which Country Will Be The Largest Economy In The World?

Find out what other counties may eventually challenge for the top economic spot.

Supply Chain, A New Concept in India - A Success Story of the India Supply Chain Council

The Concept of Supply Chain in India is a new concept if not unofficially at least officially. India Supply Chain Council has been a pioneer in this here in India in popularizing the concept in India. The organization in its two years of existence has been very successful in its endeavor. What is supply chain all about and why is it so important in today’s global business activities. Supply Chain refers to the distribution channel of a product, from its sourcing, to its delivery to the end consumer (also known as the value chain). The supply chain is typically comprised of multiple companies who are increasingly coordinating activities via an extranet.

The Effects Of An Increase In The Value Of The Euro

Generally an appreciation is good news for EU consumers who buy from abroad. It is bad news for exporters who will find a decrease in their profit margins. An appreciation can help reduce inflation in the Eurozone but could also cause lower economic growth.

You Would Think Living in an Oil Rich Country Should Make Energy Costs Cheaper for Their People?

I went to fill up my car a few days ago and saw that the cost per liter of gas at $101.9. For those of you who are not on the metric system, that would equal roughly $3.57 a gallon. In Canada, the province of Alberta is booming, not because they just have wonderful beef, but the oil industry is flourishing beyond belief.

Paid To Passage Straits Of Malacca

Moreover, the amount to be paid is a mere drop in the ocean and won't threaten their bottom line. The stepped-up naval patrols and aerial surveillance by Malaysia, Indonesia and Singapore have been effective in reducing piracy, but these are expensive affairs and so are the buoys, lighthouses and other navigation aids, and the measures to clean up oil spills. Since the littoral states have taken purposeful measures to come to grips with the issues of safety, security and pollution, it is incumbent on the international maritime community to lend them a hand. It is time the shipping industry took on board the idea that it too should contribute financially to the upkeep of one of the world’s busiest sea lanes.

Can We Afford To Ignore China

As the world scrambles to lock in resources for its people's future and security can we afford to ignore the developing world and its economies?

Trains And The Quality Of Life

I would like to comment on a published article in The Straits Times bearing the same title as this post. The article seems to be conceived to pacify those who could be opposing more rail lines as they do not see the need of expensive rail lines. As much as I like to concur with the author that having more rail lines will improve quality of life, I would like to pose some questions in response to the otherwise simplistic argument put forth.

Canada is Fully Engaged on the Detroit-Windsor Border Crossing

Canada recognizes that the Detroit-Windsor border crossing is an essential economic link between the U.S. and Canada. More international trade crosses this border in one year than the United States does annually with Japan.

The Euro Area's Data Difficulties

A lot of economists and people who are interested in EU development can't find the necessary data. Find out why!

Where Does The Money Come From

The one question nobody asks, and the one driving force that defines the sad state of the world today. The fact is, nobody knows, apart from a very few. But there are a few things we do know. We know that the money supply has been increasing world-wide at around 7.5% per year, and that local governments do not create any of it. And we know that all new money is issued by the banking system as interest-bearing debt. This truly is a curious state of affairs whereby someone somewhere is creating all this new money out of thin air and selling it to us through the banks at high interest.