The Global Economy : UK Macroeconomic performance & objectives Objectives • Identify key macro-economic objectives and key performance indicators • Be aware in broad terms of how these objectives are measured/data is collected • Identify conflicts between key economic objectives What are the UK’s main macroeconomic objectives? In pairs, take an objective and prepare some short notes on • What this measure means • Current UK performance and recent trends • How it is measured (does not require huge detail – key bullets) Economic Growth Price Stability Full Employment Balance of Payments Income Redistribution Others • Sustainability and a minimised environmental impact • Correcting market failure • Productivity • Happiness index? Economic Growth Price stability : Inflation You should read this article on proposed changes to how inflation is measured. Print, read and add to your notes. http://www.bbc.co.uk/news/business-20959765 Unemployment Balance of Trade (Exports – Imports) Redistribution of income Some essential out of class reading: http://www.guardian.co.uk/society/datablog/20 12/jun/22/household-incomes-compare Print off, read & add to your notes Conflicts? Priorities? Now Pre-Credit Crunch Independent reading/work • Read pages 208 to 216 of Smith • Read the article on income distribution • Over the coming weeks, keep abreast of changes/developments to these key data (I recommend www.tradingeconomics.com as a site to use to keep updated notes) • Read the article on proposed/rejected inflation measurement changes