Who was the labour chancellor gordon brown, Macroeconomics

Assignment Help:

Who was the Labour Chancellor Gordon Brown

In the period between 1997 and 2006 the Labour Chancellor Gordon Brown was committed to self-imposed Sustainable Investment Rule that stated that national debt would not rise above 40% of GDP. Though, since 2007 UK's national debt has almost doubled and is expected to peak at 80% of GDP in 2014.

The causes of rapid increase in the national debt are threefold. First, at the time of the banking crisis of 2007/08 British government nationalised the Northern Rock bank and partially nationalised RBS and HBOS. These bailouts kept banks solvent though saw the British government accept liability for their massive debts. Second, government ran up huge budget deficits after 2008. When the recession hit, tax revenues fell sharply however government spending increased in part to prevent the collapse of economy. Third, it's now clear that British economy has been running a structural deficit and for too long the nation has lived beyond its means. Even in good years, government spending was greater than tax revenues that meant in every year since 2002 national debt increased. Consequently the current Chancellor is committed to a programme of spending cuts with long-term objective of bringing the budget deficit under control.

 


Related Discussions:- Who was the labour chancellor gordon brown

Explain consumer price index, Q. Explain Consumer Price Index? CPI is a...

Q. Explain Consumer Price Index? CPI is a price index of a particular basket known as the CPI-basket. CPI-basket comprise essentially all the servicesand goods consumed in a co

GDP, Find the annual (yearly) real and nominal GDP numbers for Turkey from ...

Find the annual (yearly) real and nominal GDP numbers for Turkey from TCMB for the recent past. Use the EVDS system and TUIK data. Describe the source and definition of the data us

What is quantitative easing, What is Quantitative easing Quantitative ...

What is Quantitative easing Quantitative easing (QE) is an unorthodox monetary policy which since 2009 has been intermittently pursued by Bank of England and US Federal Reserv

Consumption, Consider two consumers, A and B. A and B both want perfect con...

Consider two consumers, A and B. A and B both want perfect consumption smoothing (c = cf) and both have no current wealth. However, the two consumers have different income streams.

What is average cost in the producing output, What is average cost in the p...

What is average cost in the producing output? Average total cost , frequently considered as to simply average cost, is sum of total cost divided through quantity of output gen

Trade, What is the difference between merchantilism and absolute theory?

What is the difference between merchantilism and absolute theory?

Credit multiplier, use a numerical example to illustrate how credit multipl...

use a numerical example to illustrate how credit multiplier works

Determine the appropriate interval-hypotheses , 1. Practice identification...

1. Practice identification of proper analysis type (1-Sample Z, 1-Sample t, 2-Sample t, Paired t, etc). 2. Practice hypothesis testing. 3. Practice interpretation of sta

Supply curve goes through the point, If a supply curve goes through the poi...

If a supply curve goes through the point P = $10 and Qs = 320, then a. $10 is the highest price that will induce firms to supply 320 units b. $10 is the lowest price that wil

Lilie, What are the requirements for something to be considered money? Why ...

What are the requirements for something to be considered money? Why does the dollar have value?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd