the sheets with TIIB and however IDO Flashcards
unemployment
TIIB… automatic fiscal implications due to benefits
However, IDO… the number of people who are unemployed and for how long
the wage squeeze
TIIB… falling living standards and increased cost of living
However, IDO… how big the fall in real wages is and how long it lasts
inflation
TIIB… the wage price spiral is a wild animal which gets out of control
However, IDO… how large the inflation is
balance of payments deficit
TIIB… it shows how competitive we are. it is a leakage which shows we are living beyond our means
However, IDO… how big it is
lack of productivity
TIIB… we are uncompetitive and output is lost and unretrievable
However, IDO… the governments response to it with policies and investment strategies
the budget deficit…
TIIB… we borrow a lot and we have debt which must be serviced
However, IDO… how large the deficit is
the weak pound
TIIB… it creates imported inflation
However, IDO… how elastic the response is
brexit
TIIB… it created a lot of uncertainty. we lost free trade with the single market
However, IDO… whether we can find trade elsewhere or not
the pandemic
TIIB… lockdown saw many businesses close and demand fell off of a cliff
However, IDO… how long it lasted and the governments response to it
negative growth
TIIB… unemployment is a scourge to society and carries automatic fiscal implications
However, IDO… how long it lasts and how deep it is
stagflation
TIIB… there is a limited scope for using expansionary policies as it will increase inflation
However, IDO… how long it will last
the national debt
TIIB… it has to be serviced and paid back. if bond markets get nervous then interest rates rise
However, IDO… how big it gets and whether we can find growth so the debt to GDP ratio falls
