Economics AQA Unit 4 2015

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If it was in concern to Russia it's probably gonna be the expected performance of monetary policy and potentially inflation. I'm guessing the europe question is gonna be on the UK's EU membership in general with an article on the referendum.

Wasn't the question last year on EU membership? So surely it won't come up again?

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Reply 41

ridirahman

Does anyone know what a 'Quantitative Easing Asset Purchase Programme' is? I was looking for some stats and it said the Quantitative Easing Asset Purchase Programme of UK is £375 bn
I have no idea what that means.. something to do with the budget deficit or BOP? someone help?

(edited 8 years ago)

Reply 42

NikolaT

Original post by ridirahman

QE? Bond-buying? Asset Purchase? Bank of England monetary policy? Have you not tackled this at all? It's pretty significant...

Reply 43

Maaarviin

Original post by Dreaming Dreamer

Oh awesome, where you going and your subject?
I need an A, but aiming for an A* just because econ is my subject, so that, you?

Off to Lancaster to do Business Economics, which Uni you off to?

Reply 44

Joe.B

TTIP and a Greek exit from the Eurozone

Reply 45

Dreaming Dreamer

Original post by ridirahman

I would assume that its when the central bank makes 'new money' and then with this money it buys bonds or gives the money to banks. With regards to buying bonds, this means whoever had the bonds now has liquid money instead, which means that they are better able to consume, invest etc, which boosts the economy. By giving money to banks, they are now better able to invest for there members and thus again provides a boost to the economy.

However you don't really have to know this in too much detail, so just know that they buy bonds to increase money in the market and sell bonds to do the opposite.

So quantitative easing very simply, is increasing the money supply. The UK is doing this because it has no option due to low interest rates, a floating exchange rate and contractionary fiscal policy, but needs to boost the economy.

Reply 46

mike717

Can anyone help me out for some questions?
I am not strong on EU
If a question like this come up I don't really know how to structure my arguments
Impact of another country leaving or joining EU
or
Impact of UK joining EURO

Reply 47

looleybubs

Original post by chrishadfield

Nope. 80% across the whole A level and 90% at A2 (except maths which only counts C3 and C4 towards the 90%).

Seriously?! So like for english, I could've got a high B last year but if I move my grade right up to like 90% I could get an A* this year??!!

Reply 48

Dreaming Dreamer

Original post by Maaarviin

Off to Lancaster to do Business Economics, which Uni you off to?

Awesome

I am off to York, good luck for your exams

Reply 49

Dreaming Dreamer

Original post by mike717

So for leaving or joining EU, its all about trade.
For joining Euro, focus on monetary policy.

That's my only advice

Reply 50

mike717

Original post by Dreaming Dreamer

So for leaving or joining EU, its all about trade.
For joining Euro, focus on monetary policy.

That's my only advice

But what other arguments should i put as well? Trade diversion, trade creation, leads in gain or loss in welfare. Export growth?

Joining Euro loss of monetary independence, different coubtries different exposure to interest rates

Reply 51

leinad2012

Original post by mike717

I'd be amazed if UK joining the euro came up as the argument is pretty much redundant now, if it did though also think about exchange rates, for germany the euro is undervalued helping it's trade, for Greece out is massively overvalued hurting it's trade. Where would the uk likely to be on this scale were it to join?

Reply 52

leinad2012

Original post by Dreaming Dreamer

So for leaving or joining EU, its all about trade.
For joining Euro, focus on monetary policy.

That's my only advice

Joining the euro isn't just a monetary union is it..

Reply 53

mike717

Original post by leinad2012

Joining the euro isn't just a monetary union is it..

What other arguments would you put?

Reply 54

leinad2012

Original post by mike717

What other arguments would you put?

What other ones can you think of?

Reply 55

mike717

Original post by leinad2012

What other ones can you think of?

Not sure

Reply 56

leinad2012

Original post by mike717

Not sure

Is the euro only a monetary union?

Reply 57

mike717

Original post by leinad2012

Is the euro only a monetary union?

more than that maybe?
Fiscal position and exchange rate?

Reply 58

leinad2012

Original post by mike717

more than that maybe?
Fiscal position and exchange rate?

Yes do it's a fiscal union too.

As a method for the 25 markers, plan clearly what the main aspect of the policy are (for joining euro; monetary union, fiscal union, little to no independent control over exchange rate), and then consider the direct and potential chain effects on each component of demand (C I G X-M). For investment if you can't think of any clear ones consider how confidence is affected by the policy. Make sure you consider sr and lr then conclude

Reply 59

mike717

Original post by leinad2012

Fiscal: 30% of national debt is what they want and in times of recession, automatic stabiliser, but due to Euro, one country cannot spend more but may has to increase tax
Exchange rate : trading in same currency means no longer cheaper imports and uk firms have to be non-price competitive