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A Study of the UK economy and effects of the Government and Bank of England on the Economy Period – November 2006 – November 2008

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How successful has the government and the bank of England been in running the British economy over the last 2 years (Nov 2006- Nov 2008)

Describe and evaluate the main macro economic policies used by the British government and the bank of England over the last 2 years (Nov 2006 -Nov 2008)
Solution
1. The Government of United Kingdom has continued to take a lot of comprehensive programs to sustain the economic performance of the country and to ensure employment growth in the country. It is noted that the British economy has seen a chronic weak growth. According to International Monetary Fund in 2007, the GDP per capita of the country is the ninth highest. Further discussions about the situation is anlysed in the solution.


2. The United Kingdoms governments first ever definition of the macro economic goals were highlighted in the White Paper of 1944. These goals have widely been accepted however the priorities have changed over time. The main areas of the importance as set down in the papers were divided into four main groups namely; full employment, stability in prices, balanced external accounts and economic growth. To understand assess whether the UK has been able to keep up to the main economic objectives it is essential the objectives are understood.  The solution will discuss the objectives in details and a measurement of the achievement of the goals by the government.
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