macro policy flash cards
how much are banks forced to hold in bail in debt?
£4 billion
during her time in office, by how much did thatcher decrease income tax?
- from 83% to 40% (across multiple cuts)
what is the current interest rate?
- increst rate began to be increased in 2021
- started at 0.1%
- reached its peak at 5.25%
how did interest rates change after the financial crash?
- continous cuts from 5.75% to 0.25%
in 2010-2011 how did govt spending change in the UK?
cameron cut spending by £14.3 billion
how much has been spent on QE? By how much was it expanded during covid?
- BOE created £895 billion
- expanded by 450bn
what was the budget deficit during covid?
15% of GDP
how did the value of the pound change after truss mini budget? why did this happen?
for the first time it fell below $1.09
lenders to the government feared collapse, so they began to rapidly sell government bonds, bond interest rates rose rapidly
by how much did lizz truss cut taxes?
- £45 billion in unfunded tax cuts
How many jobs did HS2 create?
over 30000
what is current uk government debt? what was it in 2006?
just under 100% of GDP
- in 2006 it was aroung 40% of GDP
How much did the government spend bailing out RBS?
$45 billion
what was the increase in mortage repayments experienced by the average home owner?
- average home owner was expected to see a 61% increase in mortadge repayments
what was the US’s fiscal policy response to the great depression?
- huge fiscal stimulus package
- spent on public infrastructure and employing people in conservation and construction
- Smoot- Hawley tariff act 1930- protectionist policies
what was the UK’s fiscal policy response to the great depression?
1931 emergency budget
-cut public sector wages and unemployment benifits by 10%
- increased income tax by 2.5%
- 10 % tariffs on all imports
what was the US monetary policy response to the great depression?
- cut interest rates from 6% to 4%, then raised them again to prevent the fall of the value of the dolalr
- increased the money supply
what was the UK’s monetary policy response to the great depression?
- abandoned the gold standard and the value of the £ fell by 25%
- interest rates were reduced from 6% to 2%
what was the US’s fiscal policy response to the financial crash?
- 2008 economic stimulus act, $152 bn
- 2009 american recovery and reinvestment act, $787 bn over a period of years
How much was spent on debt servicing in 2022/2023 by the uk government?
£112 bn
what was the US’s monetary policy response to the financial crash?
- cut interest rates several times from 5.25% to 0-0.25%
- 3 rounds of QE
- lead to an increase in the assets held by the FED from $1 tn to $4tn
what was the UK’s monetary policy response to the financial crash?
- cut interest rates over time from 5.75% to 0.5%
- QE totalling £400bn
what policy has the government introduced to encorage parents back into work?
- 30 hours free child care for 3-4 year olds
- 15 hours free health care for 2 year olds
when did planning on hs2 start and when was it expected to be implemented?
- planning started in 2017
- it was expected to be completed between 2029 and 2033
what was the predicted cost of hs2?
- expected to cost between 59 and 67 million pounds (due to price rises)
- it was originally expected to cost 37 million
