Chains of Reasoning by calum unsworth https://padlet.com/unsworthcalum/j01q345227h2pt09 Made with fortitude en-us 2021-11-09 09:57:24 UTC 2024-10-14 18:17:06 UTC hello@padlet.com unsworthcalum https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893659712 2021-11-16 09:30:12 UTC https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893659712 unsworthcalum https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893666063 2021-11-16 09:33:49 UTC https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893666063 https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893667590

]]> 2021-11-16 09:34:38 UTC https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893667590 Budget Deficit https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893704767 Pros
- If interest rates are low, government’s interest on debt will reduce and so it will be easier to pay off, therefore reducing the budget deficit. 
- If money supply increases, tax can be raised, tax revenue increases, budget deficit improves. 
Cons 
- under maintenance
 
]]> 2021-11-16 09:55:08 UTC https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893704767 https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893709099 Tapering quantitative easing would help decrease inequality. This is because quantitative easing causes an inflation of asset prices, which generally benefits investors from the higher socioeconomic groups because they can afford to buy these new bond prices. Thus, increasing inequality of wealth. QE also contributes to the decrease in the value of money due to more being made, so increased cost of living due to inflation and a decreased in the value of money negatively impacts the lower socioeconomic groups because a higher proportion of their income will have to go on purchasing the same amount of goods and services.

However, it can be argued that quantitative easing is positively redistributional because asset purchases increase market liquidity. This ultimately increases employment, which benefits the lower socioeconomic groups more. So, while asset prices might increase wealth inequality, this effect is offset by an increase in employment and low interest rates – which quantitative easing helped promote. Therefore, tapering might decrease wealth inequality but it will increase unemployment which equally contributes to an inequality gap.  



]]> 2021-11-16 09:57:36 UTC https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893709099 Low unemployment https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893728025 By keeping the bank rate low at a value of 0.1%, it becomes cheaper to borrow money from the Bank, so households are more willing and able to buy goods and services, increasing consumption, and businesses are in a better position to purchase items to expand their businesses, such as property and equipment, increasing investment and therefore increasing aggregate demand. Businesses can also hire more workers, which reduces cyclical unemployment and helps the government to achieve its macroeconomic objective of low unemployment. Quantitative easing was used to help increase economic growth and decrease the level of cyclical unemployment in the UK, so if the Monetary Policy Committee decides to taper quantitative easing, cyclical unemployment will increase as a result.  
 
However, there are many factors that affect the unemployment rate of a country such as geographical immobility, occupational immobility, automation and the level of aggregate demand, so a low bank rate will not necessarily decrease unemployment. Moreover, the level of unemployment depends on where the country is in its business cycle, in a recession unemployment tends to rise quickly whereas in a boom unemployment will usually be lower.  
]]> 2021-11-16 10:08:31 UTC https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893728025 unsworthcalum https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893735917 2021-11-16 10:13:19 UTC https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893735917 https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893760976 Monetary policy impacts the money supply in an economy, which influences interest rates and the inflation rate .
A country's importing and exporting activity can influence its GDP, its exchange rate, and its level of inflation and interest rates. 
Balance of trade is the difference between the value of export an import. 
when interest rate is low, Bank of England will lose hot money , and the export price cheaper, and there is the trade deficit happens 
when inflation rate increase, the price of export will increase, and there is a trade surplus happens]]> 2021-11-16 10:28:50 UTC https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893760976 price stability https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893782418 2021-11-16 10:42:05 UTC https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893782418 unsworthcalum https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893840798 2021-11-16 11:15:24 UTC https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893840798 unsworthcalum https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893841689 2021-11-16 11:16:01 UTC https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893841689 unsworthcalum https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893844252 2021-11-16 11:17:38 UTC https://padlet.com/unsworthcalum/j01q345227h2pt09/wish/1893844252