Tag Archives : Economics


December Stock Market Purchase – Inverted Yield Curve and Panic

December has been all about the yield curve. The yield curve is a curve on a graph in which the yield of fixed-interest securities is plotted against the length of time they have to run to maturity. A yield curve is almost always upward sloping, a sign that the economy is functioning properly. In short, you would expect interest rates to be higher the greater the length of time of a security. A 10 year bond should have higher interest rates than a 1 year bond in order to tempt buyers to buy longer dated bonds. The yield curve inverts when long-term debt instruments have a lower yield than short-term debt instruments […]


Corporations Don’t Pay Corporate Tax – Individual Consumers Do

Having worked in the finance department of a multinational organisation,I assumed that it was common knowledge that individuals as opposed to companies foot the bill for Corporation Tax. But judging by my social media accounts over the past weeks, it seems that most of the public fail to realise this. I have heard arguments that increasing corporation tax will benefit society as companies will have to pay more. Yes, the government will collect higher taxes from a higher corporation tax but the ones who be paying this higher bill is people like you and I as opposed to companies. To put it in the simplest of terms, any company that […]


How Inflation Affects Everyday Life

In the financial news, inflation seems to be all the talk of late. The Bank of England has predicted that inflation will hit close to 3% next year and this is a dramatic change from the current deflationary environment. One of the key drivers in bringing inflation to the shores of Britain is the devaluation of the Pound (£). After the brexit vote, the pound has depreciated greatly against most other developed currencies. The devaluation of the Pound makes imports more expensive as you know have to pay more pounds for a given amount of a foreign currency. As imports in the form of products and raw materials rise, businesses […]