’ on the Lorenz curve for wealth correspond to the rows of the table.By comparing the Lorenz curves for income and wealth, we can see that wealth is distributed much more unequally than income.
Firstly it happened in the subprime mortgage market in the US and then developed into full-blown international banking crisis with collapsing with the investment banks (Williams and Mark, 2010), British banks starts to borrow huge money to fund mortgages for customers, needs to pay off debt by reselling it and the mortgage is international market, and the demand of mortgage has fallen, which causes liquidity crisis (Kingsley, 2012) as shown in the graph when the financial crisis happen in august 2007 the prices of the mortgage has fallen -18.7% tell April 2009 (Kingsley, 2012).
Since the great recession of 2008/2009 UK had the slowest recovery for the economy.
Two major types that measure inflation which are consumer price index (CPI) and Retail Price Index (RPI) both measures the average of the prices paid by consumers for a fixed basket of consumer goods and services.
Main differences between CPI and RPI (source: Office of national statistics.
After July London property has fallen by 5.6% and prices went down by 0.9% as well rent is going down, before a month of Brexit the prices went up by 0.8%, were declining in prices for properties as decreasing in prices a mark that the money is leaving the market (Edwards, 2016).
Inflation can come from two sides which are demand and the supply side of an economy, it also can arise from internal and external events, a rise in value-added tax could increase in domestic inflation for the short term because firm’s production cost will raise, the unsteadiness in the exchange rate will also can cause inflation (Arooj, 2012), for instance, a decrease in the value of pound against other currencies this could cause increase in the import prices for the items (tutor2u, 2014).
(2010): An advantage property of the geometric mean is that it can get better changes in people spending patterns relative to changes in the price of goods and services.
RPI is constructed using the arithmetic mean (AM), two different methods, for instance, the AM calculate if one price increased by 25% from the base period which= 100 and another decreased by 20% their new index values would be 125 and 80 the AM of these is: Last 10 years UK financial crisis began and causes too many damages for the UK economy and growth and still facing it, and now a historic event for the UK which is Brexit.
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