ECON1085 International Monetary Economics

ECON1085 International
Monetary Economics
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Table of Contents
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................3
TASK 3............................................................................................................................................4
TASK 4............................................................................................................................................4
TASK 5............................................................................................................................................4
REFERENCES................................................................................................................................6
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TASK 1
In UK economic history began in from British in 1535. during that time major changes were
occurred in it which resulted in economic development. also, Scotland and England shared a
monarch in 1603. Between 1801 and 1921 UK incorporated Ireland into it. However, industrial
revolution occurred in which lead UK to dominate in Europe. Britain and England were
emerging economies in Europe between 1600 and 1700. this led to industrialisation in UK. so, in
entire Europe, UK was rapidly growing (Miranda-Agrippino, Nenova and Rey, 2020). More and
more industries were developing and also trade relation was strengthening with other European
nation.
it has been identified that in recent times, Brexit is event that has occurred in it. It is a
revolution against exist of Britain from EU. so, this has highly impacted on trade of UK with
other countries and the selling and buying of asset across borders. As UK is part of EU so they
follow all trade policies and laws of EU. Alongside, they have to trade and deal as per EU
regulation (Tsoukalis, 2017). they will have to change their overall trade policies. Moreover,
they have to deal with each trading partner in different way.
TASK 2
In recent times, UK economy is observing a slow downfall. It is due to Brexit which has
highly affected on economic growth. Moreover, nation is not able to cope up with such a drastic
change. In addition, trade and tariff policies has to be changed. they are not able to trade with
European nation. this has resulted in trends in variable of UK such as inflation rate is 2.48% in
2018 which has declined to 1.80 % in 2018. thus, it is high as compared to its average rate that is
1.50%. similarly, average interest rate is 0.75% in 2019 that is slightly declined by 0.5% in 2018.
But in March it was low as 0.10%. Besides that, it is stated that there is high downfall in GDP of
UK since Brexit. there is annual change of 1.8% since 2017. thus, it has affected on UK
economic growth in negative way (Chen, Devereux and Xu, 2020 ). The balance of payment is
of UK is £77.2 billion in 2018 that is equal to its 8.3% GDP. In this foreign investment is £177.7
billion in the UK. In addition to it, net debt of UK is total of £1.78 trillion which is 86.58% of
GDP. here, public debt amount is £48 billion.
Thus, it can be concluded that due to Brexit UK deficit and debt is increasing to a great
extent. thus, there is downfall in its economic growth.
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