Useful article relevant to Edexcel A Level Economics, Theme 4 – A Global Perspective...
The Bank of England has this morning published its twice yearly financial stability report:
http://www.bankofengland.co.uk/publications/Pages/fsr/2016/nov.aspx
The content is summarised by the BBC here:
http://www.bbc.co.uk/news/business-38135133
This is relevant for Specification content section 4.4 and in particular 4.4.3
Also it would be good for students to look at the 7 actual scenarios of the BoE stress test. These form the basis of the BoE’s predictions regarding the robustness of the UK banking system.
Detailed below, each would form a great ‘what if?’ talking point for a Theme 4 discussion.
BoE actual stress test scenarios
- UK house prices fall by 31%
- UK GDP falls by 4.3%
- UK unemployment rises to 9.5%
- Global GDP falls nearly 2%
- China enters recession with -0.5% growth
- US and Eurozone GDP fall by 3%
- Oil drops to $20 a barrel