Executive Summary
Introduction
– Brief discussion on national debt, why is it such an important topic? Why has the level of debt increased over the years since the 80’s
– Discussion on what needs to be addressed:
– Banks create new money when people go into debt
– For every pound of money, there’s a pound of debt
– If we want more money in the economy, we have to go further into debt
– If we try to pay off debt, then money supply reduces
– Brief discussion mentioning how this report will look into the sustainability of UK National Debt in relation to UK GDP
Key Terms
– Provide definitions of key terms (National Debt and Fiscal Sustainability, Aggregate Demand and its components, GDP, Fiscal Policy etc.)
Background Information
– Overview of UK National Debt (what is it used on? what is the current level?)
– The need to borrow (How and why firms are funded by debt? – In order to repay debt, you issue more debt. What are the consequences of this? How and why countries are mostly funded by debt? For individuals too)
– How is sustainability measured? Eg. Debt/GDP ratio
– Time horizon (Data used from 2010 to 2015)
Aims and Objectives
– To investigate the sustainability of the UK National Debt
– To evaluate the impact of the key factors which contribute to UK National Debt
– These aims will be achieved through secondary research – looking at past and present data; as well as looking at future predictions
– Key factors include the UK government spending (G), business investment (I) consumption (C), Imports (M) and Exports (X)
Note: This research project is measuring sustainability by looking into the components of Aggregate Demand and their influence on National Debt
Last Completed Projects
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