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Economic Performance of UK - Coursework Example

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Economic Performance of UK

UK's economy is experiencing slower growth as during 2007, it recorded a real GDP growth of 3.1% however, and the same has been recorded at 1.0% due to sharp increase in inflation. ( 2008). UK's inflation touched 3.8% in 2008 whereas its budget balance also widened to negative 3.8% suggesting the fact that all is not well for the UK economy.
Many critics believed that in order to arrest the rising inflationary trends in the country, the monetary authorities in the country shall increase interest rates whereas some believed that in order to reduce the impact of recession, UK's monetary authorities shall lower interest rates so that economy can be put on right track.
This paper will discuss both the options i.e. increasing or decreasing the interest rates to control inflation or avoid recession and will present a comprehensive analysis of both the options in order to provide a conclusive recommendation of which option to exercise.
The economy of UK is second largest economy in EU after Germany and fifth largest economy in the world. ...Show more


Most developed nations of the world including US and UK are experiencing an economic meltdown causing serious economic problems for both the countries. The results of such an economic meltdown are serious because it not only affected the financial system, but it has been also serious hampered the economic growth…
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