Issue Two: Q2 2014

  • A Word from the Editorial Team The KEGS Economics Journal 2013-14 is a compilation of the best economics essays and articles from within KEGS. We endeavour to set a high standard of school produced economics publications, and put KEGS ‘on the map’ in terms of smart thinking, problem solving and analysis of the real world, addressing relevant issues of the current ...
  • Syria: An Economic Crisis Theo Demolder Whilst the political turmoil and horrific humanitarian situation in Syria has been well documented, little time has been set aside to consider some of the wider consequences- such as for the national and international economies. Most immediately, the effects have been observed on the markets with oil prices increasing in August and subsequently decreasing ...
  • Must Quantitative Easing End in Inflation? Rupesh Parikh An Introduction to Quantitative Easing: With base rates set at a historical low, yet still failing to stimulate and reflate the economy, both the Bank of England and the Federal Reserve were forced to use the most unorthodox and unconventional monetary policy instrument in their armoury: quantitative easing. Quantitative Easing (QE) was defined by Bernanke ...
  • Government Shutdown Lalitha Nagarur  The US government shut down on Tuesday the 1st of October, lasting for 17 days and furloughing approximately 700,000 government employees out of the 2.1 million people in the federal workforce, after the US Congress failed to pass a budget before the fiscal year ended on September 30th. The failure to settle on a budget ...
  • The Economic Benefits of Legalizing the Drugs Trade William Easton Defined as the “cultivation, manufacturing, distribution and sale of drugs, which are subject to drug prohibition laws”, the illegal drug trade is a growing industry which has influence all over the world. The UN’s office on drugs and crime (UNODC) predicts that the number of illicit drug users is likely to increase by 25% ...
  • The Problem with Economics Oliver Hoy If you ask any budding young economist what the problem is they’ll quickly give you a short and sweet definition; ‘how to allocate scarce resources among alternative uses’. Some people would argue that a definition means nothing without understanding; nevertheless I put it to you that the youngest child faced with the simplest choice ...
  • An Introduction to Forward Guidence Henry Allen The new Governor of the Bank of England, Mark Carney, has already made his mark on the institution. A radical change in the conduct of monetary policy, with the introduction of forward guidance has been introduced this summer. Such a policy is where the central bank indicates publicly its intentions of the future path ...
  • Should we have privatised the Royal Mail? Jake Palmer Since being floated on the London Stock Exchange in 2013, there has been much debate as to whether or not the decision to privatise the Royal Mail by the UK government has been a good one. The government, it seems, believes that by selling 60% of its stake in the company it will help ...
  • Youth Unemployment Aniket Chitre Youths are those aged between 15 and 24 and there are currently over 1 billion youths in the world. 85% of youths can be found in LEDC’s (Less Economically Developed Countries) and developing countries. The global population is rising and so is youth unemployment.  Currently there are said to be over 75 million unemployed ...
  • How and when can we control Big Business? Callum Swanston There are a plethora of large businesses and monopolies in both the Global and UK markets. They can often be corrupt and exploit a number of people for their personal gain. For the good of the consumer, the supplier or the economy, should they be restricted or controlled. Can they be restricted or controlled? One ...
  • Escaping Consumerism to Conquer Global Warming Dan Heartshorne “I think all of us here today would acknowledge that we have lost that sense of shared prosperity” Barack Obama. In my view this quote could not be more accurate. As the world has developed and ever more globalised we have lost touch with our long term goal of prosperity and sustainability for the future. ...
  • Collateralized Loan Obligations (CLOs) and the ‘Intelligent Investor’? Kavi Chauhan Due to the success of the ‘tranching’ structure used in work surrounding home mortgages in the 1980s, Collateralised Loan Obligations were created- they began, simply, as pools of mortgages,  tranched to appeal to different types of investor. A CLO is a form of derivative in which payments from ‘middle to large sized firms’ loans ...
  • Economics is Flawed Arjun Kiri Economics is a subject of great interest and of paramount importance. It seeks to distil every single one of our individual psychologies and decisions into a simplified mathematical value assigned to a resultant effect. By all means, if economists were not called economists, they would undoubtedly be named the great quantifiers of our world. ...