28 August 2013

Essex Economics

Essex economics is an approach to economics which relates all economic topics or news to the impact on house prices. It is widely followed in early 21st century England.

Newsnight sent a team to Essex to investigate the impact of low interest rates on people living on fixed incomes including savings. They returned with a report on home ownership in one Essex town and buy-to-let in another.
Key concepts:
In Essex economics the only investment considered is purchasing a house; commercial investment means purchasing a buy-to-let property. Interest rates are a major topic as it affects the cost of mortgages. Economic crises are synonymous with falling property values. The most watched indices for Essex economics are known as the Nationwide and the Halifax.
The related political economy requires politicians to promise to ensure ever increasing values for residential property. (See eg Help to Buy)

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