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UK

The United Kingdom has the sixth largest national economy in the world.( And the third largest in the Europe)

The economy of United States is the worlds largest single national economy.

Importance of stability:

Economic stability is a term that has been in focus for the past several years mainly because of the economic downturn experienced globally in the recent past. Many share markets plunged and business plummeted, giving rise to one of the worst economic crisis experienced by the present generation. Many lost their jobs and some saw their savings evaporate at a rapid pace. Thus, this brings out the important question, how important the economic stability is, as having an unstable economy can pave way to an economic crisis each time when the global markets sees a downward trend.

Recession:

In economics, a recession is a business cycle contraction, It is a general slowdown in economic activity.Macroeconomic indicators such as GDP(Gross Domestic Product), employment, investment spending, capacity utilization, household income, business profits, and inflation fall, while bankruptcies and theunemployment rate rise.

Ripple Effect:

A ripple effect is a situation where, like the ever expanding ripples across water when an object is dropped into it, an effect from an initial state can be followed outwards incrementally.

Levels of inflation:

In economics, inflation is a persistent increase in the general price level of goods and services in an economy over a period of time.

Level of inflation in UK:

Inflation (CPI)

CPI: 2.2% (October 2013)[2]
RPI: 2.6% (October 2013)

Level of inflation in USA:

Inflation (CPI)

1.5% (August 2012 – August 2013) [3]

Availability and cost of credit:

The availability of credit depends on a bank's overall exposure to a given country (each bank applies a 'country limit') or commodity, and the net collateral value (assets, stocks) an individual borrower may be able to provide (pledge). The ratio to...