United Kingdom: Selected Issues

Volume/Issue: Volume 2006 Issue 087
Publication date: March 2006
ISBN: 9781451814309
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Topics covered in this book

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Banks and Banking , Inflation , Economics- Macroeconomics , Money and Monetary Policy , Public Finance , Health Policy , ISCR , CR , GDP , consumer spending , price , credit derivative , energy price , U , K , population , U , K , economy , U , K , fiscal policy framework , health care , U , K , health system , consumption growth , Health care spending , Consumption , Inflation , Energy pricing , Energy prices , Global , Europe

Summary

This Selected Issues paper on the United Kingdom reviews the IMF's Global Economy Model, which incorporates energy to examine the impact of rising energy prices on the United Kingdom. The model incorporates energy as a final consumption good as well as a primary input in the production process. With energy entering the production process, increases in energy costs affect overall aggregate supply capacity as firms reduce output and factor-utilization rates given the real increase in their cost structures.