Economist on US fiscal situation (lack of stabilisers):
We just talked about these fiscal stabilisers, which are taxes and benefits schemes that ensure that the economy's movements are stabilised around some point (a bit like stabilisers on a bike). The US seems to lack them, which means that overall its level of economic growth should be more volatile than the UK or Europe.
CBI warning to government about fiscal deficit/national debt (Monday 8 March):
Mentioned this in today's lecture. The CBI, which represents businesses, thinks the government needs to get on with cutting the deficit, contrary to the ideas of the 60 economists from a couple of weeks ago.
This blog accompanies the econ101ab Principles of Economics course given at the University of Birmingham. The lecturers for both parts of the course (101a, microeconomics and 101b, macroeconomics) will occasionally post here on matters related to lecture material. We hope to show the relevance of the concepts we are teaching at each stage of the course for helping understand how the world works...
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