The Phillips Machine

Whilst at a Cambridge Summer School I had the opportunity to see the Phillips Machine in operation and was amazed at the engineering feat as well as its economic applications. The machine (also known as the Monetary National Income Analogue Computer or Moniac) was created by the New Zealand economist William Phillips. There is believed to Read more about The Phillips Machine[…]

Japans lost decade

Originally began in the 1990s following the collapse of a stock market and property bubble. Inflation is virtually non-existent in Japan and there has been deflation over the years. This has deterred borrowing and spending as people think if they wait to spend they can get goods cheaper, borrowing also becomes more expensive if deflation Read more about Japans lost decade[…]

Specialisation and Division of Labour

Division of Labour is where a production procedure is split into different stages. Workers are responsible for a particular stage, usually in which their expertise lies. Thus by doing this, the maximum production for a day’s work would increase. An equal division of labour is where a task is split into separate jobs so that Read more about Specialisation and Division of Labour[…]

Extended Property Rights

• Property rights are considered one of the most fundamental requirements of a capitalist system, and are partly why there is need for government. • Property rights are the legal controls of the ownership of a good. • Property rights can be issued through legislature and regulations. • A property right is the exclusive authority Read more about Extended Property Rights[…]

The Costs and Distributional Effects of Unemployment

The classical view on unemployment says that there are only unemployed people who are not able and willing to work at the going wage rate. So if people would accept a lower wage they would find jobs. In this view all unemployment is a short-term problem and the best solution is laissez faire – leave Read more about The Costs and Distributional Effects of Unemployment[…]

Case Study: Kraft’s Hostile Acquisition of Cadbury’s

Cadburys, a British global producer of confectionary was bought out by the American Kraft in January 2010. Prior to the merger Cadburys was listed on the London Stock Exchange under the FTSE 100 Index. It was originally founded in 1824 in Bourneville. Its products include Flake, Dairy Milk and Milk Trays and the firm employed Read more about Case Study: Kraft’s Hostile Acquisition of Cadbury’s[…]

A Brief Analysis of the European Debt Crisis

The European debt crisis began in 2010 after many countries were beginning to come out of a deep recession caused by the Financial Collapse of 2007/08. Initially it was released that countries such as Greece and Ireland had huge debts. This was caused by previously low interest rates on their bonds, as well as a Read more about A Brief Analysis of the European Debt Crisis[…]

Why Tesco’s is launching a Price War

Tesco is trying to increase its market share against rivals Asda and Sainsbury’s. By reducing its prices on basic goods it is more likely to get a higher footfall, we would also expect the increase in quantity demanded to offset the money lost due to lowering the prices. This means we would expect the Total Read more about Why Tesco’s is launching a Price War[…]

Price Discrimination: Motorway Service Stations

A recent survey by TravelSupermarket.com discovered that a family of 4 could be paying almost £29 for a basic lunch (sandwich, crisps, a chocolate bar and a drink) at a service station. A 500ml of bottle water costs £1.27 on average at a motorway service station whereas it is 25p in an Asda supermarket. For Read more about Price Discrimination: Motorway Service Stations[…]