The paper "What Has Happened to the Economy of the United Kingdom over the Last Two Years" is a perfect example of a micro and macroeconomic case study. The United Kingdom economy is ranked number five of the global largest national economy as per gross domestic product (GDP) measurement and ranked number nine as per purchasing power parity (PPP) and it comprises of the world 4% GDP. Consequentially, the UK economy is the second-largest economy as per the European Union both GDP and PPP metrics. According to the recent research over the last two years in 2015, the UK refers to the ninth-largest exporter ninth-largest exporter and sixth-largest importer and the second regarding outward and inward direct investment (Bogdanor, 2015).
Essentially, UK is regarded among the significantly globalized economies, and it composes of four countries namely Northern Ireland, Wales, Scotland, and England. Over the last two years, the UK economy is driven by the service sector which accounts for 78% of GDP primarily the financial services that are fundamental in the UK economy and is regarded as the world significant financial centre and the aerospace industry is ranked second and the pharmaceutical industry is ranked number three. Describe and evaluate the first macroeconomic policies used by the Government and Central Bank of the UK over the last two years. Over the two-year period that is from the year 2014, the UK economy has been managed using a laissez-faire approach where the Bank of England is primarily the UK central bank that embraces the monetary policy that is responsible for setting the quantitative easing, interest rates, and forward guidance. The UK government has utilized the central bank in the last two years in the management of the national economy (Emily and Chris, 2016).
This is undertaken through two significant responsibilities that are supporting the government in maintaining financial stability and macroeconomic stability. Ostensibly, the central banks utilize monetary policy in trying to achieve the country's macroeconomic stability through recognition of lender-of-last-resort function aimed at financial stability achievement.
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Emily C and Chris G. 2016. "UK economy at a glance" Financial Times Retrieved 30th October 2016 From https://ig.ft.com/sites/numbers/economies/uk
Simon, R. 2016. "Is the UK facing a debt disaster?". Independent. Retrieved 30 October 2016 from http://www.independent.co.uk/money/is-britain-facing-a-debt-disaster-a6808086.html
Bogdanor, V. 2015. Devolution in the United Kingdom Oxford [u.a.], Oxford Univ. Press