Economic Geography - Lecture 1

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  • Created by: Howard
  • Created on: 08-04-16 18:02

The Economy Gathering Storm Clouds...

- Increasing levels of consumer debt --> Personal debt higher than GDP in UK 2004, debt rising as proportion of income, mortgage accounts for 80% of debt.

But this debt was loosely regulated...

- Increased availability of credit, internationalisation and competitiveness in credit markets, social acceptance of high levels of debt

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House Price Explosion

House prices have risen in the UK since records began (with falls, followed by recovery)...Various coutnries have had diffrent patterns but most had a significant rise in the 80/90s - a fall then rising steadily until the 2008 recession.

- Different areas in the UK have different prices, such as NE vs London.

House Price Inflation - 

- Mortgages as a proportion of income and personal debt have also risen

- Enabled by less strict lending practices, this has included loans to 'sub-prime' borrowers

- Increasing concerns about the value of this debt and the long-term security of repayments

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Credit Crisis

- Concerns over sub prime loans (high risk)

- Much has been sold into international markets

- Lack of information on the location of this debt and exposure of financial institutions

- Leading to a restriction in levels of inter-bank lending


- How did we not see the 2008 crisis coming? Who can we trust? The role of the state in the economy? Has the economy recovered?

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All economic activity is inherently spatial …

… even the placeless, fluid and international world of global finance is produced in places and impacts in our everyday lives

Geography offers a strong interpretive lens …

- Understanding spatial variability and challenging ‘global’ interpretations of events

The economy as an ‘out there’, global process …

- But one that has strong links to ‘in here’ – localities and individuals as economic actors and subjects

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