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Sixth-form economists turned out in force for a lunchtime Zoom talk on ‘Covid-19 and the Economy’ from a leading Oxford economist.

The speaker, Michael McMahon, Professor of Economics at the University of Oxford and Senior Research Fellow at St Hugh’s College, is a leading expert on communications in central banks. His interests also lie in monetary economics, fiscal policy, business cycles, and applied econometrics. He worked at the Bank of England for many years and now serves as a member of the Irish Fiscal Advisory Council.

Professor McMahon is also a Lead Editor of the Economics Observatory, a website that seeks to make economic research and government policy accessible to the general public, to which his latest contributions have focused on understanding the effect of the current pandemic on the UK economy.

His talk was given to QE’s Economics Group: Advanced Lectures – an enrichment activity targeted at those wishing to read the subject at the best Economics departments in UK universities. It was organised by Economics teacher Gustavo Ornelas-Almaraz following an initial approach to Professor McMahon by Year 12 pupil Ethan John. After Professor McMahon finished his presentation, there was a short period for questions.

Dr Ornelas-Almaraz praised the strong attendance at the event, especially given that it was held on a Wednesday – a day when many of QE’s sixth-formers are free to leave early. “The talk was both well attended and well received by our Year 12 economists. “

“They were particularly attentive to the portions of Professor McMahon’s lecture in which he laid emphasis on how the current economic situation will impact young people as they are thinking about their job prospects for the future.

“In all, it was an interesting and timely talk to our Economics students, and I am grateful to Professor McMahon for the time he spent in preparing and delivering his presentation; we have invited him to visit us in person in Barnet when the time is right.

“I have shared the resources that Professor McMahon provided amongst the students, and I am sure they will use them in their preparation for their A-level exam next year.”

Economics is a popular choice of degree subject at QE. Of this year’s 39 Oxbridge offers, seven are to read Economics at Cambridge, while one boy has an offer to read Economics & Management and another to study Politics, Philosophy & Economics, both at Oxford.

A QE team have won the Year 11 category in the Bank of England’s schools film competition with their analysis of the likely lasting effects of the pandemic on business and employment.

Abir Mohammed, Dhruv Syam and Ansh Jassra put together a polished three-minute film featuring footage from around the world on the competition theme of The changing workplace: same spaces, new realities. The 2020 competition, entitled Bank Camera, Action, challenged entrants to explore the effects of the coronavirus pandemic on the way we work, on jobs and on the economy.

Congratulating the boys on their success, the judges in the annual competition said they enjoyed watching the boys’ film, The Bank of QE, and were impressed by their filmmaking skills.

QE teacher of Economics Krishna Shah said: “I am extremely proud of the three of them and delighted that all their hard work in putting the film together has been rewarded.”

All three boys took on the role of producer, with Abir also acting as editor, while Dhruv was the narrator and Abir and Ansh were both interviewed on-camera.

The film looked at the possible permanent impacts of the pandemic both on individuals and on different sectors of the economy. The boys stated, for example, that:

• Those without access to the technology needed for remote working could lose out, leading to a possible rise in inequality;
• Small firms could find themselves unable to compete with large businesses on economies of scale;
• Unlike those in “on-line service hubs”, such as London, people living in areas of the country concentrated on manufacturing could find it difficult to work from home, putting such areas at risk of mass unemployment and poverty.

It considered the environmental benefits of reduced levels of commuting and outlined possible technological solutions to the difficulties in maintaining work-life balance that working from home often entails, such as using separate electronic devices for work and personal life and screen-time blocking apps.

And Dhruv added: “New technologies have the potential to transform the future of work – things like low-latency whiteboards and faster 5G internet completely bringing back the spontaneity of the office.

“Ultimately, the question is not whether remote working is here to stay, but to what extent.

“Most firms will choose a mixture of both [office working and working from home], but even small shifts in global work patterns will have a profound effect on all our lives. Let’s see what the future holds,” Dhruv concluded.

They won £300 for the School to spend on filmmaking equipment, as well as a £25 Amazon eGift voucher each and a certificate signed by Bank of England Governor Andrew Bailey.

• The film may be viewed on the Bank of England’s competition web page here.

A Year 13 pupil has been named runner–up in a highly regarded international Economics competition, beating off other participants from around the globe. 

Ayushman Mukherjee ranged widely in his entry to the Institute of Economic Affairs (IEA) competition, drawing on experts and episodes from across the centuries to reinforce his contentions. 

His arguments, which even included suggestions for improvements to the A-level Economics syllabus, found favour with the judges as they evaluated entries from sixth-formers around the world. Ayushman was in Year 12 when he submitted his entry. 

A record-breaking total of more than a thousand students from Hungary to India took part in the competition to win the Dorian Fisher Memorial Prize. The prize is named after the wife of Sir Antony Fisher, the founder of the IEA. Sir Antony was also a co-founder of the Fraser Institute, the Manhattan Institute, the Pacific Research Institute, the National Center for Policy Analysis, the Centre for Independent Studies, and the Adam Smith Institute.  

This is Ayushman’s second major success in an IEA competition this year: in the spring, he was part of a QE Year 12 team which took second place in the institute’s Budget Challenge event.

QE’s Head of Economics Shamendra Uduwawala said: “We congratulate Ayushman on his achievement. His essays have demonstrated his thorough grasp of economic principles and history, and it is underpinned by the additional research he undertook. He should be very proud of himself.” 

All contestants were offered a choice of essay titles in the competition. Ayushman, who is looking to read Economics at Cambridge and is the current House Captain for Leicester House at QE, had to produce three pieces of writing: firstly, there was a 1,200-word essay, for which he chose the title, What exactly is economic growth and why do some parts of the world grow more rapidly than others? He began this by citing one of the “founding fathers of Economics, Alfred Marshall who famously advised, ‘Every short statement about Economics is misleading.’” 

Secondly, he wrote a 500-word article on What does the concept of rationality mean in economics – in which, inter alia,  he explored the question of whether it could ever be rational to burn a £50 note – and, thirdly, he penned another 500–word essay entitled Identify an area of economics that you think should be given more attention in the A-Level or IB syllabus and say why this is so. 

Ayushman said: “My entry explored the determinants of economic growth, the nature of rationality, and the role of economic history in the classroom. 

“Initially, I was somewhat bewildered by the 500-world limit – it really isn’t a lot to work with! But I felt as if I managed to get a concise and polished message across. I tried quite hard to make it accessible to the average person, not just to academics. I believe this resonated with the judges.” 

In the three pieces, he explored the roles of institutions in economic development (looking at the aftermaths of two important events in English history, the 1381 Peasants’ Revolt and the 1688 Glorious Revolution), economic growth after civil wars, and the role of ideas and innovation. He also looked at the intricacies of economic rationality, and at the drawbacks of a “homo economicus” (that is, an individual with an infinite ability to make purely rational decisions).  

Finally, he articulated the need, in his opinion, for a rigorous education in economic history to be included in the A-level syllabus, suggesting it would better to explain the models that are currently taken for granted in economic education and to portray them as less infallible. 

Ayushman, who received a £250 prize, added: “This year’s competition was particularly fierce, so I’m grateful to have seen my effort pay off. I explored some really fascinating topics, which I think is going to be a great head start for university.”  

He was particularly surprised at the “great” reception he has received since the result of the competition were announced. “I’ve had people messaging me to ask about certain topics I’d mentioned – like certain periods in economic history, or recommendations for wider reading in that particular subject. It’s a really great feeling.”  

• To read Ayushman’s competition entry in full, click here.

Year 12’s Sunay Challa was one of the first-prize winners in a prestigious competition for his exploration of how artificial intelligence could help economists solve some of the most pressing problems facing the world over the next 20 years.

His 1,500-word composition won him the Economics section – and a £1,000 prize – in the annual New College of the Humanities Essay Competition.

After his entry reached a shortlist of 350 from the initial 5,000 entries, Sunay was invited to a virtual awards ceremony, where he learned that he had secured the top prize. The judges praised his essay for its holistic approach and for his examination of the specific ways in which AI could benefit economists.

Congratulating him on his success, QE’s Head of Economics Shamendra Uduwawala said: “In a thought-provoking and insightful essay, Sunay identified a good sample of significant global problems and then set out exactly how AI might be able to help solve them, setting out both the capabilities and the limitations of this technology.”

The global competition for Year 12 students run by London’s New College of the Humanities involves participants answering a single question in one of seven humanities subjects: Art History; Economics; English; History; Law; Philosophy and Politics & International Relations. First, second and third prizes are awarded for each subject.

The question for the Economics category entered by Sunay was: Which problems will economists need to solve within the next 20 years and will artificial intelligence help them?

Sunay said: “I began my essay by considering the concept of Artificial Intelligence and the tools it can offer to economists and then then went on to look at the most significant future socio-political and environmental issues economists will be forced to deal with.”

Paying particular attention to how “data-fuelled modelling and solutions” could be used to improve existing systems, Sunay focused on five topics:

• Energy usage
• Wildlife protection
• Agricultural issues
• Cars
• Healthcare.

He included specific examples of the way AI is already being successfully used, mentioning, for example, a software program which identifies and tracks individual giraffes in Kenya by their unique coat patterns and ear outlines. An immense task, involving some 100,000 animals, it would be impossible for humans to undertake effectively without technological help. Yet, he wrote, the use of artificial intelligence had transformed the conservation effort: “A computer’s speed and ease of tracking means the giraffes are more effectively protected, with the giraffe population falling by 40% pre-AI and only 2% after its implementation.”

In the field of healthcare, Sunay wrote: “Although AI cannot find cures, it can definitely speed up their discovery by finding correlations in huge data sets, and this may prove critical in saving countless lives.”

In his conclusion, Sunay noted that “…we can see that wherever it is applied, AI brings to the table the unrivalled ability to parse through huge volumes of data in record time, and in turn save money and increase efficiency…While it may not be able to solve problems like humans, AI brings unmatched advantages to any task and as such will prove hugely beneficial in trying to solve economic problems.”

As well as the £1,000 prize money, Sunay wins an award that will be presented to him at a ceremony for which, because of the pandemic, no date has yet been set.

• You can read Sunay’s essay here.

In only QE’s second year of entry, a School team has secured second place in a prestigious and demanding national Economics competition.

For the Budget Challenge, run by the Institute of Economic Affairs (IEA), the team had to put forward a budget with taxation and spending policies for the UK in the coming financial year.

And, since their progression to the final coincided with the explosion of the current pandemic in the UK, the four sixth-formers had to think on their feet to adapt their proposals to the fast-changing national conditions.

Headmaster Neil Enright said: “The boys should be very pleased with this outcome. They clearly demonstrated a mature understanding of the macroeconomic conditions and put together a coherent policy and strategy, at what has turned out to be a very challenging time in our country’s history. They are to be congratulated.”

Ayushman Mukherjee, Thapan Reddibathini, Tanishq Mehta and Hari Gajendran, all of Year 12, had been shortlisted as one of just ten teams to appear before a panel of judges for the final. Owing to the pandemic restrictions, they instead submitted their ten-minute presentation by video.

In it, they described their three-pronged proposals for investment in health, education and social protection. They proposed a tax system that promotes vertical equity, whilst “putting money in everyone’s pocket”. All four boys made contributions and talked through the details of their policies, which they presented in a series of slides.

They talked about the impact that the Covid-19 virus has had on the British and world economies, and reflected on how they had had to be responsive in their thinking: “We have had to significantly adapt our original budget,” said Thapan, while Tanishq spoke of the need to supply long-term, sustainable, investment for the NHS in addition to a short-term aid package.

They discussed the looming recession, recent stock market crashes, increasing unemployment, stagnant growth and a struggling economy, as well as the measures they proposed to help alleviate these pressures and challenges.

Head of Economics Shamendra Uduwawala said: “I am delighted for our team, who have certainly had to think on their feet. National competitions such as this help them to apply what they have learned about Economics in the classroom to real-world issues, and these are extraordinary times. It also helps them to develop their writing, research and analytical skills.”

The IEA’s Director of Education, Outreach and Programmes, Christiana Stewart-Lockhart, said: “This year we had a record number of entries and the overall standard was very high, so the teams that made it to the final have all done very well. Obviously, the final of the Budget Challenge could not be done in the usual way this time, so the teams all had to record their presentations remotely and there were several that were outstanding by any measure.”

Brighton College were placed first, with QE named runners-up alongside Withington Girls’ School, Manchester, and Fortismere School, Muswell Hill, London. Each of the second-placed teams receives £250.

Budding traders had the chance to try their hand at playing the markets in a special challenge run by the Economics department.

Around 155 boys studying Economics in Year 11 enjoyed a morning trying to increase their £15,000 starting fund by trading in shares and foreign exchange as part of an Economics enrichment day.

After lunch, they gained insights into the role of the Bank of England given by a visiting speaker from the bank.

Economics teacher Krishna Shah said: “This was a great alternative to normal Economics lessons, and the boys appreciated getting away from ‘boring’ essay-writing! The morning gave them an opportunity to experience the pressure of a real trading floor and apply their understanding of supply and demand to a real-life situation. Not only did they gain an insight into the atmosphere of a real trading floor, but they also developed skills such as teamwork, analytical thinking, leadership, decision-making and risk management.

“In the afternoon, as well as learning about careers with the Bank of England, our economists also received an introduction to monetary policy, which is useful as they enter Year 11.”

The event was run over two days, with half the boys attending on each day. The first group heard from Anu Ralhan, who is a Senior Actuary with the bank’s Prudential Regulation Authority. On the following day, it was Marisa Camastral, who is an analyst in the bank’s Monetary Analysis Directorate.

For the trading floor simulation – dubbed the ‘stock market challenge’ – the teams were tasked with maximising the value of their fund in sterling, US dollars and shares after starting with a notional £15,000.

The boys could buy and sell shares in nine companies and also buy the dollar. They had to make decisions about which companies would increase in market value and which would lose out, based on media reports from newspaper, radio and TV briefings.

“Most teams increased on their initial £15,000 significantly,” said Mrs Shah. “They all had to take risks on which stocks to invest in, and some were more successful than others. Luck played a part, but they also needed to be quick-acting and to communicate well as a team, so that they made sound investment decisions.”

The afternoon speaker offered the boys the chance to win £500 by taking part in a quiz after his talk. But this ‘promise’ wasn’t quite as solid as the Bank of England’s famous promise on banknotes ‘to pay the bearer on demand’: the £500 actually comprised old, shredded £20 notes – as the boys found out only at the end!