Britain Economy

Start-up Business Risks and Benefits in Britain

Start-up Business Risks and Benefits in Britain

Introduction

Dramatic fluctuations in the global economic environment have been noticed during the past three decades, the result of which has been several studies regarding inflation models and forecasts. Much work has been done on the examination and evaluation of inflation forecasts as well as methodologies that may be put to use in said forecasts. In literature studies, Fama (1975, 1977) has been well-known for his theories, some of which have been extended by Gibbons (1982, 1984). These theories present approaches that aim to extract the interest rates circulating within the market. This is done with the inherent forecast of inflation, thus creating time-series models to form an opinion of what the interest rates may be.

In calculating nominal interest rates during inflationary periods in Britain's' economy, the utilization of a time series model can form forecasts with greater accuracy. Additionally, the Bayesian approach was introduced in order to estimate the vector auto aggressive models. These were a further improvement in the estimation of forecasts (2001). In this paper, I will be assessing whether the current British economy can allow for new businesses to be set up with minimum risks.

Discussion

While the U.K has been a beacon of hope for businesses to start up, private or public, for a long time, the global position over inflation has slowly changed. The purchasing power of consumers in the U.K used to be one of the strongest in the world as the U.K pound sterling had a high value to hold in international markets. Now, with the addition of the Euro as per European Union nations, there is confusion over whether or not it is a wise decision to start up a new business. The risks of starting the new business outweigh ...