Contractionary policy


Gender pay gap

80% of UK companies and public sectors organisations pay women less than men.

Read more

Contractionary macro-economic policy

Contractionary policy is implemented when policy makers use monetary or fiscal policy to constrain aggregate spending in an economy. This is often used in response to excessive growth above an economy's trend rate which may create unwanted inflationary pressure.

This would, typically, mean raising interest rates or reducing the money supply - in the case of monetary contraction - or raising taxes or reducing real government spending - in the case of a fiscal contraction.

This can be illustrated diagrammatically, using the AD-AS model.

contractionary policy

WTO rules

What exactly is the 'most favoured nation' rule?

Read more
Read more
Model agencies collude to fix rates

Regulators find leading model agencies guilty of price fixing.

Read more
Customs unions

Costs and benefits of customs unions.

Read more
New materials

Multiple choice papers for Paper Three.

Read more
Savings ratio

Savings ratio falls to lowest level on record.

Read more