Economic Policy and Economic Evaluation of the United Kingdom 2005 - 2015

Term Paper , 2016 , 28 Pages , Grade: 1.0

Economics - Case Scenarios

In a globalizing world with increasing international trade and growing markets as well as crisis influencing countries worldwide, it becomes ever more important to evaluate and compare the economic performance of different nations as well as their impacts on each other.

One method that allows assessing a country’s macroeconomic performance is the "magic square" according to Kaldor (1971). This approach takes four variables into consideration, which should be pursued amongst an economy:

1. Sustainable growth,
2. Equilibrium of balance of payments,
3. Price stability,
4. High employment.

In the following paper, the economic progress of the United Kingdom within the previous 10 years should be evaluated using the "magic square" as a framework. Therefore, there will be the main focus on the most relevant macroeconomic indicators, such as the growth of GDP, inflation rate, unemployment rate and current account balance, in order to provide a sound overview regarding UK’s overall economic development.

Table of contents

Table of figures

List of abbreviations

1 Introduction

2 Economic Growth - GDP
2.1 GDP of the United Kingdom 2005-2015

3 Price stability - Inflation rate
3.1 Inflation rate United Kingdom 2005-2016

4 Unemployment
4.1 Unemployment UK
4.1.1. Okun’s Law UK

5 Balance of payments - Current account balance
5.1 Current account balance UK

6 Other macroeconomic indicators
6.1 Exchange rate
6.2 Openness
6.3 Debt to GDP

Conclusion

List of References

Appendix

• College: EBC University Düsseldorf
• Course: Economic Policy
• Grade: 1.0
• Author: Julia Schwieger (Author)
• Publication Year: 2016
• Pages: 28
• Catalog Number: V369444
• ISBN (eBook): 9783668470965
• ISBN (Book): 9783668470972
• Language: English
• Tags: UK, United Kingdom, GDP, Economic Analysis, Okun's Law, Inflation rate, Inflationsrate, BIP, Balance of Payments, Exchange Rate, Openness, Wirtschaftliche Entwicklung, Economic Development