Brexit: weak pound threatens craft beer revolution, say brewers | Business | The Guardian

Drinkers may have to accept price rises after the slump in sterling sends cost of imported ingredients and equipment soaring.

Source: Brexit: weak pound threatens craft beer revolution, say brewers | Business | The Guardian

When the price of USD in GBP terms increases so does anything we buy in USD. Imported hops, a key ingredient of craft beer, is now more expensive and, as a result, the costs of production for brewers is rising. Consider the impact on the price mechanism? An inward shift in supply = higher prices = reduced consumer surplus. In addition, a weaker pound means it is more expensive to import the necessary capital to help expand production to meet the craft beer craze that has swept the country over the past year or so. On a positive note, this could mean a rise in demand for UK hop farmers as brewers switch to the, now cheaper, domestic substitute. However, brewers don’t really like UK hops, the climate isn’t quite right for certain varieties, and when your product is priced at a premium based on its superior taste, that is a problem. All in all, expect the price of your favourite APA (American Pale Ale) to rise.

Low and behold | The Economist

Another year of low prices will create strains in the world economy

Source: Low and behold | The Economist

From oil supply in Saudi Arabia to interest rates in the US via the Chinese exchange rate – a wonderful illustration of the interconnected nature of economics. A must read.

Frognal Way, Hampsted… where the average house price is £10m+

Frognal Way in Hampsted (so exclusive it doesn’t appear on Google street view) is in 10th place in the UK’s most expensive streets league table. Top spot belongs to Kensington Palace Gardens where the average abode will set you back the small matter of £42,591,972. But why are house prices so high? Or, more importantly, why are house prices so high in some parts of the UK, predominantly London, and so low in other parts of the country (last month someone bought a house in Grimsby for £8,000, the same amount of money I paid for my car)?

There are many different reasons, some of those are linked to the market forces of demand and supply, and others related to government intervention. Those getting ready to embark on the new A level or IBDP economics courses are expected to write a short commentary on the UK housing market over the summer break. The Guardian article (link enclosed) is the sort of article that should be used as a source – although using this particular article would lack a degree of originality.

Feel free to ask questions regarding the summer work by using the comments section of this post.