Learn about the economy

Find out about key concepts and issues relating to the economy

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What is the economy?

What is the economy?

It’s a word you can’t avoid. But when put on the spot, many people struggle to say what it means. So where to start?

What is GDP?

Perhaps the most talked about economic concept. But what is it and how do we measure it?

What is capital?

Capital is another name for the financial resources a bank has that act as a cushion or shock-absorber against unexpected losses. For example, if someone fails to repay their loan.

What does the Bank of England do?

The Bank of England is unlike banks you see on the high street or use for online banking. Instead, it is the central bank of the UK.

Who sets exchange rates?

We do not set the exchange rate. But our actions can indirectly affect the value of the pound.

Build your knowledge on economic growth

Why does economic growth matter?

Find out what it means when people talk about economic growth.

How fast can the economy grow?

While we often think of economic growth as good news, it can also happen too rapidly.

How has growth changed over time?

Historians have found that until the Industrial Revolution, global living standards were essentially flat.

Build your knowledge on financial markets

What are financial markets and why are they important?

Financial markets are where people can buy, sell, loan, lend, save, insure or invest.

Is the global financial system any safer than before?

There is more work to be done, but the global financial system is safe, simpler and fairer today than it was a decade ago.

What is CBDC?

CBDC stands for central bank digital currency. It’s digital money a country’s central bank can issue alongside cash. If we introduced one, we’d call it the digital pound.

Will there be another financial crisis?

Two things we can be sure of when it comes to financial crises: there will be another and it won’t be the same as the last.

What are cryptoassets (cryptocurrencies)?

Cryptoassets are generally held as investments by people who expect their value to rise.
What is financial stability?

What is financial stability?

A stable financial system is one that can provide crucial services to households and businesses in good times and bad.

Build your knowledge on jobs and pay

Will a robot takeover my job?

What will the future of work mean for you?

Why are football players paid so much?

The short answer is: supply and demand.

 Build your knowledge on housing 

 

How does the housing market affect the economy?

House prices affect how much money people spend. They have tripled since the late 1970s.

What’s the Bank of England’s role in the housing market?

If we look at how much British households borrow, more than seven out of ten pounds are for mortgages.

Why is your mortgage rate higher than Bank Rate?

The interest rate on your mortgage is usually much higher than Bank Rate.

Build your knowledge on climate change and the economy

How is the Bank of England responding to climate change?

We help the UK to manage the risks that climate change brings and we support its move to net-zero.

Climate change: what are the risks to financial stability?

Climate change poses risks for the stability of the financial system, particularly for the insurance and banking sectors.

Most read

1. When will we get back to low inflation?

2. Why are interest rates high and when might they fall?

3. What are interest rates?

4. What is legal tender?

Other topics

Inflation and interest rates

Money, payments and spending

Banks, borrowing and saving

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