Is it possible to control inflation while maintaining a high level of employment.

Watch
ThatPrickImran
Badges: 2
Rep:
?
#1
Report Thread starter 6 years ago
#1
Is it possible to control inflation while maintaining a high level of employment. ?


Economics Help!


Posted from TSR Mobile
0
reply
Mrkingpenguin
Badges: 18
Rep:
?
#2
Report 6 years ago
#2
Search the Tutor2U website, it has a good resource for A level econ (which I assume you are doing)
0
reply
Old_Simon
Badges: 12
Rep:
?
#3
Report 6 years ago
#3
There are more economic theories on this question than you can shake a stick at.
0
reply
Alludeen1
Badges: 16
Rep:
?
#4
Report 6 years ago
#4
What type of inflation? If cost-push, nope not really, if demand-pull then by definition employment actually increases, so you could use samples of fiscal/monetary supply side policy or loads of other stuff. As mentioned before, Tutor 2 U is like the economics bible
0
reply
MagicNMedicine
Badges: 20
Rep:
?
#5
Report 6 years ago
#5
You can control inflation with sound monetary policy but to keep a high level of employment in that situation you would need a well functioning labour market, with things like:

- Incentives for job search (ie benefits system should be based on job search rather than having lots of people on inactive benefits)

- Good information in the market for job matching jobseekers to firms so that skills get fully utilised

- Low transaction cost of hiring for firms (minimise job-related tax contributions, tight control of wages)

- Diverse range of skills in the economy

- Good transport networks and sufficient housing both to buy and rent to facilitate labour mobility

- Ease of in/out migration to widen the potential labour supply

- Minimise market power in the labour market whether it be from firm cartels or trade unions or professional organisations restricting competition

All in all the UK when compared to most other countries has a pretty efficient labour market. It is not perfect by any means but our labour market is one of the better ones.
0
reply
ThatPrickImran
Badges: 2
Rep:
?
#6
Report Thread starter 6 years ago
#6
Thanks guys!


(Original post by Mrkingpenguin)
Search the Tutor2U website, it has a good resource for A level econ (which I assume you are doing)
Do you know where abouts on the website I can find relevant information? Thanks.




Posted from TSR Mobile
0
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

New lockdown - Do you agree schools and universities should remain open?

Yes (44)
36.97%
No (61)
51.26%
I don't know (14)
11.76%

Watched Threads

View All