FinancialAdvice.co.uk Logo

Qualified advisers answering your
Financial Questions
call 0800 092 1245

What Is The Underlying Driver Of Any Economy?

When you take a look at the economies of the world it can be very difficult to see exactly what makes them tick, what is the main driver and what should be the first target in signs of trouble. Have you guessed what drives markets? What turns economic cycles? It is you............



The main driver for any economy is human nature and how those who participate in the economy feel about their prospects, the prospects for the country and prospects for certain areas of the economy. Cast your mind back to the run on Northern Rock and the problems which that caused, and continues to cause, what was the main element there?



While one problem was the ongoing credit crisis in the US, people were more concerned that the bank was going out of business. What started as a small number of withdrawals soon grew until suddenly it was a run on the bank and starting to affect assets and cash flow. Northern Rock literally went from being a leading UK bank to overnight becoming the black sheep of the banking world.



Human (and more importantly investor) sentiment can be a very powerful instrument, something which can push economies to record highs in good times but cause them to plummet to the depths of despair in difficult and uncertain periods.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:



Latest News

Blogs

Helpful new tax year facts that could affect you and your money


Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.


Read more

Useful Links

Popular Searches

Please Enter More Details

 
Enter More Details
Continue