A letter to my children

In Cambridge we have the weird tradition of a parenting system, where 2nd years can get college children: it’s basically a buddy system to help freshers integrate into Cambridge life. Below is info for Girton Economists, but most should apply for Cambridge Economists.

Dear Kids,

Hi, my name is Rhys and I’m your college father. Your college mother is ***, who reads English and should be shortly in touch to fill in any gaps I miss. We are your college parents, every Cambridge student is assigned these when they start and it’s our job to give you information and act as a student pastoral outlet to help you settle in. [...]

Ricardian Equivalence

Explain Ricardian equivalence, and discuss what implication it might have on the efficacy of expansionary fiscal policy.

Ricardian equivalence states that for a given level of government spending a change in taxes – financed by a deficit – will have no effect on the real economy. It is posited that individuals are forward thinking and rational and realise that a tax break today will have to be paid in the future. Therefore individuals won’t go out and spend this tax cut but will instead save it so that they can smooth consumption.

They will save ΔT.r (tax cut multiplied by real interest rate), acknowledging that the government will have to pay interest on its debt so future taxation will need to incorporate this. [...]

Europe 2020

Within the overall Europe 2020 strategy, there will be difficult tensions to resolve between social and economic aims, as well as between qualitative progress and quantitative targets.

The impact of Europe 2020 on employment and the labour market will be pivotal, because it is the policy domain that straddles the boundary between the EU as an economic union and its wider social ambitions. Discuss.

The 2020 strategy is designed to promote “smart, sustainable and inclusive growth” with 7 key targets to; increase total investment in R+D to 3% of GDP; reduce greenhouse gas emissions by at least 20% compared to 1990 levels; increase the share of renewable energy to 20%; and move towards a 20% increase in energy efficiency; reduce school drop-out rates to less than 10% and increase the share of the population having completed tertiary education to at least 40%; lift 20 million people out of the risk of poverty and social exclusion; and raise the employment rate to 75% amongst 20-64 year olds. [...]