Situation Economique Uk

Introduction

“Economy watch: What caused the return to recession and how long will it last?”

It’s an article from the website thisismoney-co.uk. It was written by Andrew Oxlade and it was published the 6th July 2012. It deals with basics of financial crisis descended from recession and rising debt in the UK. The aim of our presentation this morning is to explain the current economic situation in the United Kingdom. We’ve divided our talk into 2 parts:

-First We’d like to give you an overview of causes of the return to recession in the UK

-Then we will focus on the economic forecasts in the UK

Conclusion

In order to reduce the impact of economic crisis, Banks decided to react.

Indeed, central banks slashed rates, it was decreased from 5% between October 2008 and March 2009, but it's not enough to ward off the recession. That's why the Bank of England's main objective was to increase the supply of money in the UK economy. It created money and bought assets from financial companies. Thanks to this measure companies felt richer, they less likely to dismiss workers and it was a means to encourage banks to lend. Other measures were launched aimed at encouraging lending : Estimates of the total taxpayer liability then, including lending and insurance schemes for banks, was put at nearly £1.5 trillion. The Government hopes to get its money back once the troubled banks return to health. If not, it will be paid for by higher future taxes.

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