Table 14 gives some estimates of unemployment rates in a number of OECD countries, both by national definitions and by standardised definitions. Comment on the relationship between these two sets of figures for the UK in 1997. A former Chancellor of the Exchequer, Nigel Lawson was once accused of having a one club economic policy. The current Chancellor has been accused of throwing the club away. Explain why this is.
Monetarists advocate rules rather than discretion in macroeconomic management.
Explain and evaluate the rationale for such a view. The modern quantity theory of money can be seen as a natural evolution of the Cambridge cash balances approach. Explain and discuss. In the Spring of 1998 many commentators were arguing that the pound was overvalued - possibly by as much as 30 percent.