Hi luke
Sorry for the late reply. My daily routine has slightly changed due to long fasting time. I've noticed some trends, but I need to look into the data more, when I get some time.
Regarding the deficit: iirc, last year I heard that every UK taxpayer will be paying
at least 1000 pounds more. My guess is it's even higher than before. But your point about bank bailout is a very important one. I've actually asked a faculty member about bailouts - more specifically whether someone has done any empirical works of bailouts and not bailouts from the viewpoint of social welfare maximisation in economic terms. AFA he know none has. The reason, according to him, Central banks or government thinks that making such comparison would undermine the market. In other words, it may hamper investor's interest in the money market of the country. 'Intresting', isn't it? I'm writting this bit here in the hope that someone, specialised in Public Economics or Monetary Economics, will take it up as their future project.
My area of academic research is theoretical macroeconomics. That's why it's taking longer than usual. I'm going to ask my supervisor about it in the next meeting.
Ash
).
