Christmas Number 1

A favourite of mine at this time of the year is 'Fight of the Century - Keynes and Hayek going down - which can be found on this link:

http://econstories.tv/#lightbox

For the Keynesian household I would recommend the following on your Santa wish list: https://www.amazon.co.uk/Keynes-Return-Master-Robert-Skidelsky-x/dp/0141043601

For the Hayekian family your consumer surplus might be maximised if you get this free offer:

https://www.youtube.com/watch?v=0QD75lUm51s

https://mises.org/system/tdf/Road%20to%20Serfdom%20in%20Cartoons.pdf?file=1&type=document

https://www.amazon.co.uk/Road-Serfdom-Routledge-Classics/dp/0415253896

Y13 Terms of Trade

Often overlooked when it comes to revision but a vital insight into primary dependant emerging economies and the problems LEDC countries face:

http://www.economicshelp.org/blog/2016/economics/terms-of-trade-effect/

Aggregate Demand - tricky topics

Consumption - what is the wealth effect and how significant is it?
http://www.tutor2u.net/economics/blog/the-wealth-effect

Investment
Keynes 'Animal Spirits'
http://www.economicshelp.org/blog/glossary/animal-spirits/

Access to credit
https://www.amazon.co.uk/Keynes-Return-Master-Robert-Skidelsky-x/dp/0141043601
credit easing - http://www.bbc.co.uk/news/business-15908282

Demand for exports http://www.telegraph.co.uk/business/2016/09/21/exports-boost-car-manufacturing-in-august-as-industry-awaits-bre/

Government Spending http://www.economicshelp.org/blog/142/economics/what-does-the-government-spend-its-money-on/

Economics essay competition

Corpus Christi College, Cambridge
Year 12 Essay Competitions, 2016-17

We are pleased to announce that our 2016-17 Essay Competitions are now open to all UK students in Year 12 (Lower Sixth) or equivalent.

v   Christopher Marlowe Essay Prize in English

v   Corpus Essay Prize in Economics

v   E.P. Thompson Essay Prize in History

A maximum of two entries per school or college is invited in each of our competitions. The deadline for receipt of entries is 5 pm on Friday 17 February 2017. Important information about registering and submitting entries can be found via the following link: http://www.corpus.cam.ac.uk/wp-content/uploads/old/Corpus-Prize-for-Economics-2016-17.pdf

A pot of £500, including a First Prize of £300, is available for each competition. Prize-winners and other highly commended entrants will be notified by letter in March 2017 and invited to a lunch at Corpus Christi on Saturday 6 May 2017.

Price Elasticity of Supply

Don't get confused with PED, couple of useful videos here to sharpen your understanding of Price Elasticity of Supply (PES):

PAJ https://www.youtube.com/watch?v=20b_zVHmZG0

Tutor2u https://www.youtube.com/watch?v=H8VLO6as7pc&spfreload=5

Consider the different implications of supply shifting out and becoming more price elastic (less price-inelastic) or swiveling around on one point as it becomes more price elastic.

Aggregate Demand

Good link here on Aggregate Demand data: https://www.ifs.org.uk/uploads/gb/gb2016/gb2016ch2.pdf

UK Economic Performance

Tutor2u have produced some excellent charts on the UK http://www.tutor2u.net/economics/blog/ten-charts-on-the-uk-economy-october-2016

Terms of Trade and UK's Balance of Trade

Noreena Hertz, ITV's chief economist, warned that the recent fall in sterling may not have such a beneficial impact on the UK's trade deficit as hoped using the last collapse in sterling's value in 2008 for evidence. Economics Help records what happens as follows: http://www.economicshelp.org/blog/2016/economics/terms-of-trade-effect/

Oligopoly

Some useful links:

Tutor2u http://www.tutor2u.net/economics/blog/a2-micro-oligopoly

Economics Help http://www.economicshelp.org/blog/glossary/concentration-ratios/

KInked demand curve https://www.coursera.org/learn/principles-of-microeconomics/lecture/DwbIg/the-price-leadership-model-the-kinked-demand-curve-model

Game Theory http://www.tutor2u.net/economics/reference/oligopoly-game-theory

Government regulation

Thank you to Ahmad in year 11 for finding this up-to-date article on Vodafone. "Under law Ofcom’s penalties are capped at 10pc of a company’s turnover for the specific period under question, but historically fines fall well below this threshold" http://www.telegraph.co.uk/business/2016/10/25/vodafone-braced-for-multi-million-pound-ofcom-fine/

Regulatory capture http://www.independent.co.uk/life-style/food-and-drink/news/is-the-british-nutrition-foundation-having-its-cake-and-eating-it-too-1925034.html

Monopolistic Competition

Study - http://www.tutor2u.net/economics/reference/monopolistic-competition

Answer Q 10 b

http://qualifications.pearson.com/content/dam/pdf/A%20Level/Economics/2013/Exam%20materials/6EC03_01_que_20130122.pdf

Rational or irrational consumers

There is an essential case study here with useful links: http://qualifications.pearson.com/content/dam/pdf/A%20Level/economics-a/2015/teaching-materials/Rational-or-irrational-consumers-Theme-1.pdf

Also try Q4 and 5 from Gillespie: http://global.oup.com/uk/orc/busecon/economics/gillespie_econ3e/student/mcqs/ch03/

Tutor2u powerpoint on Behavioural Economics: http://www.tutor2u.net/economics/blog/what-you-need-to-know-if-you-are-teaching-behavioural-economics-for-the-first-time

Answer Q5 a and b http://qualifications.pearson.com/content/dam/pdf/A%20Level/economics-a/2015/specification-and-sample-assessment-materials/Economics_AS_Collated_SAM.pdf

Specialisation and Division of Labour

Useful application to the Ford Assembly line: http://www.history.com/topics/henry-ford/videos/history-of-the-holidays-the-story-of-labor-day

Past exam questions:

 2013 http://qualifications.pearson.com/content/dam/pdf/A%20Level/Economics/2013/Exam%20materials/6EC01_01_que_20130513.pdf

2014 http://qualifications.pearson.com/content/dam/pdf/A%20Level/Economics/2013/Exam%20materials/Question-paper-Unit-1-(6EC01)-June-2014.pdf

2015 http://qualifications.pearson.com/content/dam/pdf/A-Level/Economics/2013/Exam-materials/6EC01_01_que_20150511.pdf

Comparative Advantage Theory

Accurately defined - http://www.economicshelp.org/blog/glossary/comparative-advantage/
Explained in 60 seconds - https://www.youtube.com/watch?v=U12yZXBmQmY
A useful numerical example and criticisms - http://www.economicsonline.co.uk/Global_economics/Comparative_advantage.html
Trade quiz: http://news.bbc.co.uk/1/hi/business/3201185.stm
Trade negotiator: http://news.bbc.co.uk/1/hi/business/6183887.stm
TPP: http://www.bbc.co.uk/news/business-32498715
China: http://www.bbc.co.uk/news/business-36877573
Trade Patterns: http://www.economicsonline.co.uk/Global_economics/The_pattern_of_trade.html
UK Trade Patterns https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/32114/10-803-uk-trade-performance-growth-patterns.pdf

Economist of the week - John Kay

Fascinating interview about the world financial crisis on BBC Radio 4's Today programme with John Kay brought me to his website - worth a listen to the interview and a look at his  other articles: http://www.johnkay.com/

Inflation

Some useful links from Tutor2u:

How is inflation measured: http://www.tutor2u.net/economics/reference/inflation-measuring-inflation

Consequences:  http://www.tutor2u.net/economics/reference/consequences-of-inflation

Cherwell Economist Commended

Well done Jack Haile for being awarded a Highly Commended in the 2016 RES competition. "The overall standard of essays this year was really high so to reach the commended category from a total entry of 1,690 essays is a notable achievement!"

Jack's award winning essay:

Does rising inequality warrant the imposition of higher income and inheritance taxes on the rich?

Inequality is the greatest threat humanity faces in the 21^st century. An issue less overtly terrifying, but much more sinister, than civil war, global warming or Islamic extremism, for inequality is often the driving force behind these catastrophic world events. Whether it is social division causing conflict in Ukraine ^[1], reduced tax receipts limiting the UK’s ability to fund environmental subsidies ^[2] or sky-high levels of unemployment driving young men to extremism in Iraq ^[3], inequality remains the underlying factor in common. This is not just a case of the rich growing richer and the poor becoming ever more destitute; this is a case of many feeling that the rich are deliberately exploiting the poor in the workplace, in government and throughout their lives. This essay will explore both the positive and negative effects of inequality and evaluate the effectiveness of increased taxes, both income and inheritance, which aim to mitigate its ramifications. It will assess the truth behind the trickledown philosophy and find that a rising tide does not lift all boats.

If the National Minimum Wage had kept pace with FTSE 100 CEO salaries since 1999, it would now stand at £18.89 per hour instead of £6.70 per hour ^[4]. However, inequality cannot just be defined by wage differences; it is a far more complex and ingrained social issue. Inequality affects our lives from the moment we are conceived. In Australia, perinatal death, between 2001 and 2004, was twice as likely for infants born in public hospitals than in private ^[5]. This theme is reflected world over with private healthcare having lower infant mortality rates in countless countries. Thus inequality not only affects our lives from the moment we are born but also dictates whether or not we are born at all.

Inequality follows the lives of many into childhood, through the vast disparities between the quality of private and state-funded education. In the UK more money is spent on private education than anywhere else. The best-off 7% of children in Britain have three times as much spent on their schools than the average child in the other 93% ^[4]. Consequently, the less fortunate have their opportunities limited from the offset. The cycle of inequality is repeated as children from lower socio-economic backgrounds are hampered in their ability to attend top universities and gain high paying jobs. As a result of their lack of qualifications and limited job prospects these individuals cannot afford to send their own children to private schools or even move into more expensive catchment areas for the ‘better’ state schools there. The cycle of inequality is thus complete. However, many argue that this is not the case and that instead inequality acts as a driving force for the underprivileged, motivating them to work harder and save more in the hope of escaping this vicious cycle. But is there any evidence that inequality is beneficial to society?

We are morally ingrained to believe that inequality is ethically wrong. This ‘truth’ has been hammered into us from birth as part and parcel of our consciences, to the extent that the term ‘inequality’ is now used as a synonym for ‘unfairness’. But if we pause for one moment, and ignore the stubborn swing of our moral compasses, could it be envisaged that inequality is ultimately a force for good, at least in an economic frame of reference? Some might argue that inequality benefits everyone, no matter where we lie on the social spectrum, stating that it is a tool used by the capitalist society we live in to ensure a minimum standard of living for all. 

On October 3, 1963, President John F Kennedy famously popularised the phrase ‘A rising tide lifts all boats’ ^[6]. This metaphor succinctly summarises the economic trickledown philosophy that suggests that if the economy is experiencing growth, namely, if there is a real increase in GDP per capita, then the benefits of this growth should be felt across the economy regardless of individual socioeconomic positions. If only Kennedy had been aware of the damaging connotations that this quote would come to represent. In an effort to justify the increased wealth of the rich this phrase is time and time again employed in defence of tax cuts, as a rebuttal to calls for the redistribution of wealth, and as a side-step to claims that the poor’s exploitative work conditions and wages are unjustifiable, all based on the reasoning that increased wealth in the higher echelons of society supposedly benefits us all. This is a fallacy, which has led to a culture of millions idealising the rich as all-powerful wealth creators for each and every one of us. Why? Because whilst average UK incomes have only just recovered from the worst economic crisis since the Great Depression, British billionaires have seen their net worth double since the recession ^[7]. It is clear that creating wealth at the top, of which inequality is a by-product, does not benefit the majority.

On May 6^th 2016, “John Doe”, the source behind the largest information leak in history consisting of 11.5 million released documents, named income inequality as a primary reason for his release of these ‘Panama Papers’ ^[8]. This leak highlighted the imbalance of power and wealth in the world and why income and inheritance taxes are ineffective in righting the scales. The papers revealed nearly 214,000 offshore entities ^[9], demonstrating the ease by which taxes are avoided and on such a colossal scale. Income and inheritance taxes are only as effective as the legislation that prevents their avoidance. Where there are gaping flaws in the system, as in the UK where the tax gap, the difference between tax revenues and the total sum that could potentially be collected, is £34 billion ^[10], increasing income and inheritance taxes will be inadequate in solving inequality.

Raising income taxes would not harm the wealthy but would instead harm the individuals for whom increased income and inheritance taxes were intended to help. This is because those on low incomes cannot afford to evade taxes since the cost of doing so renders the act unviable. Equally, most workers both public and private sector, lack even the option to reduce their tax payments as their salaries are taxed prior to their receipt of them. Consequently those who deserve increased taxes the least are the most susceptible to their effects. Higher income taxes additionally attack the lower-paid as they act as a disincentive to work. As marginal tax rates increase, individuals may not take on more hours of work because the resultant benefits are diminished by the increased rate of tax per hour of work. However, some may argue that labour is fairly immobile, especially for those with fixed salaries, and thus it is hard for these employees to increase their hours worked regardless of tax incentives or disincentives. Nevertheless, through the rise of zero hour contracts in the UK, a growing number of individuals are highly responsive to tax changes. If income taxes fall they can increase their hours worked with relative ease to capitalise on these tax cuts, assuming the demand for and supply of labour are in equilibrium, and likewise if income taxes increase, many are able to reduce their hours equally quickly. Raising income tax rates consequently reduces the incentive of those in employment to work and drives both capital and labour out of the country.

At the G20 summit in June 2012, in response to President Francoise Holland’s proposals to impose a 75% tax rate on incomes over €1 million, David Cameron promised to “roll out the red carpet” to French business people fleeing to avoid these higher rates ^[11]. This reflects the disturbing weakness of income tax in that, due to the rise of globalisation, economies have become increasingly inter-connected and as a result the effectiveness of income tax falls as freedom of movement rises. As a consequence of loose capital controls, countries are racing to roll out this “red carpet” faster than their rivals, in pursuit of the wealthy demographic, all whilst sweeping the growing inequality beneath as they do so. The system of income tax is flawed across the globe. Whilst it may be untrue to present income taxes as ineffective in targeting the rich, the only effect of this targeting seems to be reward in place of punishment.

Inheritance taxes initially appear to offer some level of hope. These taxes do not embody the same negative economic connotations that income tax does. However, they are equally avoidable and thus are an equally feeble response to inequality. When his father Ian died, David Cameron received £300,000 in his will ^[12]. This was just below the maximum amount allowed, and so was exempt from inheritance tax. This sum has since increased to £325,000 under David Cameron himself. Following Ian Cameron’s death, the majority of the remainder of his estate passed to David’s mother tax-free, as they were married. David’s mother promptly gifted him £200,000, which, if she outlives this gift by seven years, will pass to David also tax-free. This act in itself does not constitute tax avoidance, but because David received this sum in order to equalise the amount he received from his father in comparison to his other siblings, this two-step process seems illogical. Negating the costs of inheritance tax, would it not have been far more practical for David to receive the entire sum in his father’s will? As a result of this two-stage process, if David’s mother lives seven more years, David will have avoided £70,000 of inheritance tax ^[12]. This exposes the inheritance tax system for what it is– crippled and corrupt. If society is so misaligned that the Prime Minister can avoid inheritance tax, and in the same breath reduce the amount of people forced to pay it ^[13], then this tax is unquestionably flawed.

Inheritance taxes are fundamentally unproductive, not only because they are so easily avoided, but also because they target so few. Inheritance tax is only paid if a person’s estate is worth more than £325,000 ^[13]. When the average inheritance in the UK is £63,279 ^[14], it is evident that this is a tax for only the wealthiest of the wealthy minority. Therefore inheritance taxes only serve to bring the wealthiest down to the levels of the still wealthy, yet do nothing to combat the growing divide between the rich few and the much poorer majority. Nevertheless, a reduced cap on inheritance taxes would be crucial in combating rising social injustice. An economy functions at its best when the most talented rise to the top, and inheritance rigs this process in favour of the rich, many of whom may not be the smartest or most suitable individuals for these positions. Inherited wealth facilitates opportunities for the rich that are out of reach for the rest of society. This is damaging to the economy, since restricting the jobs of innovators, leaders and entrepreneurs to the wealthy few effectively reduces the productive potential of society. When the best suited for these jobs are blindsided by the rich and well-connected, the economy suffers and inequality perpetuates. 

The UK is on a trajectory to become the most unequal of the richest 25 countries in the world ^[4]. In their current state, it is evident that income and inheritance taxes are ineffective in slowing the growing tide of inequality that is flooding the globe. Other methods to restore equality are readily available but are all too often ignored, in favour of the prevailing free market ideologies adopted by governments worldwide. To tackle inequality we must first change our attitudes. It is no surprise that inequalities continue to rise, when in the UK, the Prime Minister presides over a cabinet containing more members of the 1% (those with a total household income of over £160,000 per year) than there have been in decades ^[4], when more boys from Eton go to Oxford and Cambridge than boys who are eligible for free school meals ^[15], and when one in seven members of the senior judiciary has been educated at one of just five different private schools ^[15]. It is apparent that elitism is embedded in our society. Having such little diversity at the top of society corrupts democracy.

The system we live in allows for vast and increasing disparities in wealth. This essay has shown that increasing income and inheritance taxes will do little to change that, and instead will cause more harm than good to those they intend to help. Without strict legislation the rich can easily avoid income tax, as they can afford the luxury of hiring lawyers and experts to do so. However, the poor do not have this same privilege and cannot afford to avoid these taxes. Thus income taxes fuel the rise of inequality rather than slowing it as intended. Inheritance taxes provide some benefit, but because of their ever-increasing ceiling, they do little to level the playing field for the next generation. Whilst inheritance taxes are effective in reducing the differences in wealth within the top percentiles, the differences between the top and the rest is largely unchanged. As a consequence, the rich can afford to build privilege upon privilege, wealth upon wealth, throughout the generations, whilst any small gain in income achieved by one generation of the less well off is immediately watered down by income and inheritance taxes, rendering its benefit to future generations largely imperceptible. The best education and the best jobs are restricted to those who can pay, and thus the cycle of inequality continues. The challenge to breaking this cycle lies in the fact that the political and business elite, who benefit from the status quo, are not answerable to the electorate as those that actually vote tend to be older and wealthier. The solution then is to engage more of the disenfranchised, the downtrodden and the underprivileged in the electoral process thus empowering us to make a change. Only then we can improve the life chances of those who currently cannot pay through better education and combatting the prevailing preference of employers for private over public schooled applicants, make the tax system fairer through stricter legislation, ensuring that we are all equally burdened by tax, not just those who cannot afford to avoid it, and we must alter our beliefs around wealth itself by not glorifying the wealthy but instead condemning them for their tax avoidance. But we must act quickly to avoid inequality snowballing further or else it will soon be clear that Kennedy’s time-old phrase must be updated for the 21^st century; the cheapest boats are sinking. A rising tide lifts only yachts.

Word Count: 2449

References:

[1] Harley Balzer (2015) 'Inequality: The Ukraine invasion and public opinion', Georgetown Journal of International Affairs,[Online]. Available at:http://journal.georgetown.edu/spotlight-on-16-1-inequality-the-ukraine-invasion-and-public-opinion/ (Accessed: 21st June 2016).

[2] Terry Macalister (2015) ' UK solar panel subsidy cuts branded 'huge and misguided'', The Guardian, 17th December

[3] Robert Looney (2005) 'Socio-Economic Strategies to Counter Islamic Extremism in Iraq', Calhoun: The NPS Institutional Archive,

[4] Danny Dorling (2015) Inequality and the 1%, 2nd edn., London: Verso.

[5] Robson, S.J., Laws, P. and Sullivan (2009) 'Adverse outcomes of labour in public and private hospitals in Australia: a population-based descriptive study', Med J Aust, 190(9), pp. 474-477.

[6] Ted Sorensen (2009) Counselor: A Life at the Edge of History, New York: HarperCollins.

[7] Juliette Garside (2015) Recession rich: Britain's wealthiest double net worth since crisis,Available at: https://www.theguardian.com/business/2015/apr/26/recession-rich-britains-wealthiest-double-net-worth-since-crisis (Accessed: 21st June 2016).

[8] John Doe (2016) 'The Revolution Will Be Digitized', The International Consortium of Investigative Journalists, [Online]. Available at: https://panamapapers.icij.org/20160506-john-doe-statement.html (Accessed: 21st June 2016).

[9] Fernando Blat and Jorge Gómez Sancha (2016) Offshore Leaks Database, Available at:https://offshoreleaks.icij.org/pages/about (Accessed: 21st June 2016).

[10] Vanessa Houlder (2016) UK tax gap climbs to £34 Billion, Available at:http://www.ft.com/cms/s/0/48d5a518-552a-11e4-b616-00144feab7de.html#axzz4BrPKKQgO (Accessed: 21st June 2016).

[11] Jonty Bloom (2012) Will the rich flee France's 75% tax rate?, Available at:http://www.bbc.com/news/business-19626188 (Accessed: 21st June 2016).

[12] Jolyon Maugham (2016) ' Did the Cameron family avoid inheritance tax?',Newstatesman, [Online]. Available at:http://www.newstatesman.com/politics/staggers/2016/04/did-cameron-family-avoid-inheritance-tax (Accessed: 21st June 2016).

[13] (2016) Inheritance Tax, Available at: https://www.gov.uk/inheritance-tax/overview(Accessed: 21st June 2016).

[14] Hayley Kirton (2016) UK adults expecting a big windfall from inheritance are set to be sorely disappointed, Available at: http://www.cityam.com/233720/uk-adults-expecting-a-big-windfall-from-inheritance-are-set-to-be-sorely-disappointed-with-one-in-ten-mistakenly-believing-that-the-payout-they-predict-will-fund-their-retirement (Accessed: 21st June 2016).

[15] Patrick Wintour (2014) Michael Gove attacks Conservatives' 'ridiculous' number of Old Etonians, Available at: http://www.theguardian.com/politics/2014/mar/15/michael-gove-old-etonians-conservative-david-cameron (Accessed: 21st June 2016).

[16] George Arnett (2014) Elitism in Britain - breakdown by profession, Available at:http://www.theguardian.com/news/datablog/2014/aug/28/elitism-in-britain-breakdown-by-profession (Accessed: 21st June 2016).

Inflation

Economics help - http://www.economicshelp.org/macroeconomics/inflation/definition/

Bank of England - http://www.bankofengland.co.uk/education/Pages/resources/films/default.aspx

Do not trawl through data https://www.youtube.com/watch?v=ob1rYlCpOnM

Quantitative Skills

New to AS - get up to speed with your Quant skills: http://www.pearsonschoolsandfecolleges.co.uk/Secondary/BusinessAndEconomics/16plus/EdexcelASandALevelEconomics/Samples/AS-and-A-level-Economics-sample-Units/Sample-Unit-2-Economic-data.pdf

http://www.tutor2u.net/economics/reference/confidence-in-handling-economic-data-in-a-level-economics

Please do not trawl through data: https://www.youtube.com/watch?v=0WJIfykRoWo

Tutor2u Summer Reading List

The following is from 2012 but still includes some favourites of mine:

http://www.tutor2u.net/economics/blog/enrichment-economics-recommended-reading-for-student-economists

Bloomberg's Summer Reading List

Bloomberg’s top three for 2016

By Barry Ritholtz include:

1. “Rise of the Robots: Technology and the Threat of a Jobless Future,” by Martin Ford

Given the angst about robots taking jobs from, well, everyone, this 2015 FT & McKinsey Business Book of the Year could not be more timely.

I am interested in machine intelligence, robotics and neural networks, so given the book’s acclaim and great reviews, I expect to find insights into what the future economic implications of these rapidly accelerating technologies will be.

2. “Money Changes Everything: How Finance Made Civilization Possible,” by William N. Goetzmann

Given the myriad problems finance has caused -- credit crises, the dot-com collapse, housing booms and busts, commodities crashes, deflation -- it is easy to forget how wondrous financial technologies and institutions have made the modern global economy possible. We probably fail to spend adequate time contemplating how such essential economic elements as money, bonds, banks, corporations, etc., evolved into their current forms. This looks like the book that can make that explanation interesting.

It is rare that I would even consider reading a book based on a single blurb, but given my respect for William Bernstein, his did the job: “Only William Goetzmann -- an archaeologist, art historian, and esteemed finance scholar -- could have produced this masterful exploration of money and investing through the ages. Money Changes Everything is at once deep, broad, sweeping, and gorgeously illustrated. It is a book that readers will savor and refer to again and again.”

 3. “Phishing for Phools: The Economics of Manipulation and Deception,” by George A. Akerlof and Robert J. Shiller

Perhaps the flip side of better decision making is this question: Why are economic players so easily manipulated and deceived? Written by two Nobel laureates, it explores a radical idea in economics: that markets are not benign places of exchange, but are either positive or negative.

“Phishing for Phools” has won too many awards and accolades to list here. But when narrowing down my list, I noted that Bob Shiller (hear the Masters in Business interview here) co-wrote this -- what else do you need to know?

Financial Markets: Savings

Using your class notes, Anderton and the following Economics Help link: http://www.economicshelp.org/blog/848/economics/savings-ratio-uk/

Answer the following question:

Explain one macro-economic effect of a low level of savings in the UK.

Year 12 Mock Videos

10 Essential Tutor2U Revision Videos to Watch Before You Sit an A Level Year 1 (AS) Micro Exam Paper:

http://www.tutor2u.net/economics/blog/10-essential-revision-videos-to-watch-before-you-sit-an-a-level-year-1-as-micro-exam-paper

Negative interest rates

Topical video here from the FT, useful for A2 Economics exam or new A Level macro content:

http://www.tutor2u.net/economics/blog/negative-interest-rates-defy-gravity

June 18th 6EC03 online revision

Essential short revision webinars (online student conferences) here for A2 Economics students:

http://www.tutor2u.net/economics/events/students//online?utm_medium=email&utm_campaign=A2%20Econ%20-%205%20Revision%20Webinars%20on%20Saturday&utm_content=A2%20Econ%20-%205%20Revision%20Webinars%20on%20Saturday+CID_031c064a671ed9982863484cfd899901&utm_source=CampMonitor&utm_term=Revision%20Webinars%20on%20Saturday

6EC03 Final Revision

I am available period 1 and 2 Friday and Monday for any final checks. In addition I will be providing a light reminder of key exam skills at start of lunchtime on Monday. In the meantime Tutor2u have provided this excellent video playlist "there is bound to be something here to support your revision":

http://www.tutor2u.net/economics/blog/the-unit-3-micro-revision-playlist

Royal Economic Society Essay Competition 2016

The 2016 RES Economics Essay Competition has just gone live on Tutor2u

The deadline is midnight on Thursday 30th June 2016 but given exams get started now.

Competition Basics

Write an essay of up to 2,500 words. The word count includes footnote and excludes references and bibliography. Essays must be unique, not used elsewhere. Use Word.

The Prize for 2016

The first prize will once again be £1,000 together with an engraved trophy together with cash prizes for the other leading essays. Highly commended essays, which Cherwell have had a few in recent years, result in students being invited to the award ceremony in recent years as well as an added bonus to your UCAS form/CV.

Referencing your essay

 Use the Harvard Referencing System. http://www.res.org.uk/view/essayEduTraining.html

ESSAY TOPICS FOR 2016

Students should choose ONE of the following essay topics for 2016:

1.  "Allowing more immigration of refugees would be good both for refugees and for the economies they come to." Discuss. 

2. "Low interest rates penalise the thrifty, so the sooner the Bank of England raises interest rates the better." Discuss.

3. Should the government compensate households and businesses that get flooded out?

4. Further support is needed for first-time buyers in order to tackle the present unaffordability of housing. Do you agree?

5. Does rising inequality warrant the imposition of higher income and inheritance taxes on the rich?

6. Should internet companies like Uber and Airbnb be regulated?

Year 12 - writing a UCAS statement

Free webinar from Tutor2u but sign up today!

http://www.tutor2u.net/events/online/writing-a-ucas-statement-for-economics

A2 exam tip: "On the Global Economy"

"On the Global Economy" - when you see this in an exam question it is usually useful to compare the effects on an LEDC and a developed country, they are usually linked and it provides an opportunity for deeper analysis and evaluation.

A2 - Agricultural subsidies June 2014 Q2b

Worth spending some time on this one as you need to blend your context learning of specific LEDC countries and EU, USA, New Zealand with some A2 and AS  knowledge, good resource link here on the latter - Tutor2U:

http://www.tutor2u.net/economics/reference/government-intervention-producer-subsidies

A2: FDI is more important than trade (trade patterns), discuss?

Good article here on why less trade may not be a cause for concern. Trade patterns in the rcenet past may have appeared to have changed from imports from USA, Germany or Japan to imports from China but often 'Made in China' meant low assembly costs in China but value added in USA for example. Today 'Made in China' more often means what is says as China moves up the production line to include value added; this is further aided by FDI deals that have been secured between US/EU governments and firms with China. For more read here:

http://www.ft.com/cms/s/0/48299f58-7176-11e4-b178-00144feabdc0.html#axzz49fVzAFxU 

A2: What is the WTO?

Despite de-globalization the WTO remains a powerful institution in the world and one you need to be fully aware of:

https://www.wto.org/english/thewto_e/whatis_e/whatis_e.htm

http://www.bloomberg.com/news/articles/2015-12-22/u-s-commerce-department-to-put-256-tariff-on-chinese-steel

A2: using corruption as an example

Just looking through one of your practice essays and reminded me corruption is not always well explained - so please do use the following Tutor2 resource to sharpen up on this:

http://www.tutor2u.net/economics/blog/corruption-should-you-use-it-as-an-example-in-a-question-on-development-economics

6EC04 Revision

Couple of reminders here:

Take some time familiarising yourself with International Competiveness data and what it means for at least two countries of your choice: http://reports.weforum.org/global-competitiveness-report-2015-2016/

Try out these tricky essay questions, can just be plans at this late stage:

Q1a, Q2a, Q3a and 3b

http://qualifications.pearson.com/content/dam/pdf/International%20Advanced%20Level/Economics/2013/Exam%20materials/WEC04_01_que_20150123.pdf

AS Micro economics quizzes

http://www.tutor2u.net/economics/blog/unit-1-micro-revision-quiz-and-game-on-market-prices

http://www.tutor2u.net/economics/blog/as-micro-weekly-revision-quiz-week-1

http://www.tutor2u.net/economics/quizzes/as/basiceconomicproblem1/quiz.html


http://www.tutor2u.net/economics/quizzes/as/ped1/quiz.html


http://www.tutor2u.net/economics/blog/unit-1-micro-10-questions-on-government-intervention scroll down for quiz


http://www.tutor2u.net/economics/blog/unit-1-micro-revision-on-the-price-mechanism scroll down for quiz

http://www.tutor2u.net/economics/blog/unit-1-micro-key-term-glossary-markets-and-market-failure scroll down for quiz

http://www.tutor2u.net/economics/blog/unit-1-micro-revision-presentation-on-externalities scroll down for quiz

Strengths and weaknesses of regulation

Price capping - http://www.tutor2u.net/economics/blog/a2-economics-revision-efficiency-and-price-intervention-in-markets

Performance targets - consider problems with targets in the NHS and train service regarding punctuality.

Evaluating competition policy - http://www.economicsonline.co.uk/Business_economics/Evaluation_of_competition_policy.html

- http://www.tutor2u.net/economics/reference/government-intervention-regulations

Sample Assessment Material new AS and A Level

The link is here:

http://qualifications.pearson.com/content/dam/pdf/A%20Level/economics-a/2015/specification-and-sample-assessment-materials/Economics_AS_Collated_SAM.pdf

New A Level case studies

Economic thinkers

National happiness

Rational or irrational consumers

The Great Depression

Global Financial Crisis

Financial Sector

What is Quantitative Easing?

Worth remembering that the key tip with QE is ensuring you have a straightforward explanation. QE has been used by the Bank of England to increase the money supply by pumping £375 billion into banks and other financial institutions. This increase in the money supply will eventually, it is hoped, result in credit easing thus ensuring households and firms will be able to borrow cheaply. With a resulting increase in Consumption and Investment the UK should be experiencing demand pull inflation and thus avoiding deflation which is associated with recession and rising unemployment.

The side effects associated with QE in the short term:

Rising inequality and increased money supply washes into rising demand for assets - house price boom, vintage car prices soaring and rising commodity prices makining those owning these assets better off.

The pound depreciating given the rise in the supply of sterling.

Whilst remembering to keep it simple - the following links provide some useful background knowledge:

http://www.bbc.co.uk/news/business-15198789

http://www.bankofengland.co.uk/monetarypolicy/pages/qe/default.aspx

IEA videos

Always a good source for debate and thereby evaluation - the Institute of Economic Affairs, established by Hayek, have some useful videos here:

http://www.iea.org.uk/tv/channel/media

Essays - getting to the top level

Useful video clips here, worth also considering context - either your own or using the data provided.The more specific the context reference the better:

KAA video: https://mix.office.com/watch/agav7xvxv74q by Joe Carr-Hill

And the EV video: https://mix.office.com/watch/2ls7uowujton

Clearly these are for the full A level but provide a useful signpost for AS.

Debt Relief Under the Heavily Indebted Poor Countries (HIPC) Initiative

Think about why National Debt is a big problem for an LEDC country, despite the fact that as a percentage of GDP their debts are lower than most developed countries. Update yourself with the IMF's latest approach:

https://www.imf.org/external/np/exr/facts/hipc.htm

UK Economy 2016

This new document highlights how the UK economy is currently performing - essential for the the well prepared AS and A Level for their macro exams:

http://www.tutor2u.net/economics/blog/state-of-the-uk-economy-in-2016

AS/A2 Economics Revision Videos

Build your exam technique skills for your AS (Year 1) Economics studies with this superb series of revision videos from tutor2u's Geoff Riley


http://www.tutor2u.net/economics/reference/revision-videos

Theme 1 - Year 12 - Final 10 lessons

Mr Gray  – last 10 lessons for Theme 1

Essential you are focussed on this in preparation for moving on to Year 13 content at the end of this term or for sitting Paper 1 (8EC0/01).

Traffic lighted specification – prioritise study of red sections, seek advice and guidance email tgray@cherwell.oxon.sch.uk for a quick answer or to arrange a revision session. Websites Keep referring to www.grayseconomics.blogspot.com for tips and looking at Edexcel Past Papers.

12C1/12c2

Tues 19 April Revision, final RAG of your Personalised Learning Checklist

Weds 20 April – c1 – Supply side feedback;  plus lunchtime top up on externalities.

Fri 22 April – feedback Mock; plus lunchtime top up on externalities.

Tues 26 April – Levels conference

Wed 27 April c2 – Supply side feedback

Fri 29 April – Mock     8Ec0/02

Tues 3 May – Content feedback

Weds 4 May – c1- Diagram test

Friday 6 May – Practice paper  - Levels 1

Tues 10 May (School games) – Practice paper – Levels 2

Weds 11 May – c2- diagram test

Friday 13 May – Revision lesson

16 May AS 8EC01 exam

12E

Tues 19 April Revision for Mock 2, final RAG of your Personalised Learning Checklist

Weds 20 April – c1 –lunchtime top up on externalities.

Thurs 21 April – Mock 1 feedback and Supply side feedback

Fri 22 April –lunchtime top up on externalities.

Mon 25 April – Content feedback

Thurs 28 April –Mock   2  8Ec0/02

Tues 3 May – Practice paper - Levels 1

Thurs 5 May – Practice paper - Levels 2

Mon 9 May – diagram test

Thursday 12 May – Revision lesson

16 May AS 8EC01 exam

6EC04 Create your own revision notes

Useful resource recommended by Lonpe here to complete your own revision notes:

https://drive.google.com/file/d/0B2accg9QLl1jaVVlN3RIMXJZc1lCMEhtcjJRV2tUaTdPN2tn/view

6EC03 - Multiple choice questions help

Practice getting this section completed inside 30 minutes whilst avoiding losing easy marks can be tricky. This useful resource from Tutor2U helps:

http://www.tutor2u.net/economics/blog/supported-multiple-choice-questions-for-unit-3-economics

A2 6EC04 Essays and Mark Schemes

Good summary here of essays and mark schemes from 2010-2013. For our current topic on Public Finances look at June 2011 Question 1 - how would you attempt this using real examples drawn from a developed and a developing country?

http://www.slideshare.net/tutor2u/edexcel-unit-4-essays-mark-schemes-20102013

Public finances in developing countries:

https://www.cia.gov/library/publications/the-world-factbook/fields/2116.html
http://geo-mexico.com/?p=11600
http://www.developmentideas.info/chapter/public-finance-in-developing-countries/
http://eml.berkeley.edu/~burch/Besley-Persson-handbook-2011.pdf
https://www.oecd.org/gov/budgeting/47558957.pdf

Economics at the Oxford Literary Festival

Some great opportunities to attend lectures to top up your understanding and round your knowledge in preparation for University: http://oxfordliteraryfestival.org/about/festival/tickets

6EC03 Revision Cards

Thank you Lonpe for finding the following website which has useful flash cards for 6ECO3:

http://www.cram.com/flashcards/edexcel-economics-unit-3-2830564

Year 13 cover work Monday 7 March

Study the following powerpoint on International Competitiveness from tutor2u:

http://www.tutor2u.net/economics/reference/international-competitiveness



Research for an LEDC, Emerging Economy and Advanced country (OECD) their international competitiveness.

Plan then answer the following exam style question:

a) Discuss the international competitiveness of countries in the global economy (20 marks)
b) Discuss measures a government, in a developing country, would be able to take to improve the international competitiveness of their economy. (30 marks)

13EC: International trade graphics

World's leading visualisation engine for international trade data. Some good graphics here to get quickly to grips with developing, emerging or advanced countries data plus product markets for example which country is the world's leading exporter of gold:


http://atlas.media.mit.edu/en/

13EC: Development - The Primary Curse

Another great Tutor2u resource here this time focussing on primary product dependency - a blessing or a curse:

http://www.slideshare.net/tutor2u/economics-of-the-natural-resource-trap

Year 13: Development - Stuck in the middle

Great resource here for case studies and evaluative thinking on growth and development:

http://www.tutor2u.net/economics/blog/unit-4-macro-economic-growth-investment-and-the-middle-income-trap

Year 13 Essay Skills

Using the levels approach and the following video - assess your recent essay on Globalisation:

http://www.tutor2u.net/economics/reference/a2-macro-exam-skills-globalisation-question

My Revision Notes...Economics online guide

Useful link here to the new (2015) and old A Level:

http://www.hoddereducation.co.uk/myrevisionnotesdownloads

Banking reform: are we nearly there yet?

Banking reform: are we nearly there yet?
Seven years on from the crisis, how far have banking systems been reformed? John Vickers will review the economics behind the recommendations of the Independent Commission on Banking, which he chaired in 2010-11, and review progress since.

https://www.facebook.com/events/1531242910538887/

Year 13 and 12 Cherwell students - confirm your place on this talk please email me by 3pm on Monday Feb 1st.

PLEASE NOTE THIS IS A PUBLIC MEETING NOT A SCHOOL TRIP.

Over the course of his career Sir John Vickers has held positions ranging from Chief Economist at the Bank of England to Director General of the Office of Fair Trading. In 2010 he became Chair of the Independent Commission on Banking and a year later made important recommendations such as ring fencing retail from investment banking. He is currently Warden of All Souls College, Oxford and a senior lecturer teaching the Introductory Macroeconomics course.