What caused the rise in the UK terms of trade?
The UK terms of trade – the price of UK exports relative to the sterling price of UK imports – rose by 15% from 1995 Q3 to 2003 Q1, increasing the purchasing power of UK consumers. The rise was almost entirely accounted for by a rise against non-EU countries. This article looks at various explanations and what they mean for the likelihood that the terms of trade increase will endure. The article concludes that a variety of explanations, including changes in demand and productivity, seem plausible; less so the appreciation of sterling within the period. But no one explanation is satisfactory by itself. Asset finance Asset finance is widely used in the United Kingdom, allowing firms to exploit the value of their assets in securing finance. It may be particularly important as an alternative source of funding for new or smaller firms that lack a trading record or are otherwise unable to attract more conventional finance. This article provides an overview of asset finance from a UK perspect
