This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.


  • Demand and supply, housing market and monetary policy

Click to watch the short video below and then answer the questions:

  • Using a diagram, explain why NZ house prices increased by 43 per cent over the past two years

  • Explain how a rising interest rate will affect the price of houses in NZ

  • Evaluate the reasons why a rising interest rate will not be as significant as first thought, using the data provided

  • Why are banks in the UK likely to be affected by a potential housing market crash within NZ?

Gavin Simpson and Pete Clift, Economics In Ten podcast

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