Problem Analysis using IS-LM Model

Problem Analysis using IS-LM Model

Introduction

The primary aim of this article is to critically analyze a recent global event in light of the IS-LM Model.

Discussion

UK Credit Rating Downgrade

A recent article by Bryan-Low, Cassell (2013) titled “UK Rating Cut Puts Spotlight on Budget” explains the amplification of pressures on UK Treasury Chief, George Osborne. These pressures are a direct exertion of the loss of UK's prized AAA credit rating, by Moody's Investors Service. The treasury chief thus far has been unsuccessful in reviving the struggling British economy. Osborne has continually extended the governments cost cutting program, though the programs ...