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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!

At this year’s final of a prestigious national business and accountancy competition, a QE Sixth Form team picked up prizes for teamwork, integrity and commercial acumen.

Karanvir Singh Kumar, Yash Shah, Harshil Shah and Manas Madan competed alongside 47 other school teams at the final of the BASE competition run by ICAEW (Institute of Chartered Accountants in England and Wales) in Birmingham.

The competition provides school and college students with a taste of what working in the profession is really like, requiring them to approach business decisions as if they were Chartered Accountants.

The boys enjoyed a three-course dinner and overnight stay at the Hilton Hotel. But next the work began: after an early breakfast, the team received their briefing information at 9.00am and then had only two hours in which to make their decisions and prepare their final presentation for the judges.

The QE boys’ challenge was to choose which of three options would be of most benefit to Ghanaian villages: to invest in equipment for farming the cassava root vegetable, in a warehouse or in solar panels.

Team leader Karanvir said: “We had to consider how we would finance the venture and which sponsor we would choose. Throughout our analysis we also had to consider ethics and demonstrate integrity – key qualities of Chartered Accountants.”

“We had a stressful two hours to prepare our presentation. First, we made sense of the case studies. Then we began to write our scripts and made our PowerPoint presentation. We chose to recommend investment in solar panels because of its potential to transform the lives of the local population and to enhance the socio-economic development of the country.”

After the two hours were up, the 48 teams were split into smaller groups of 5-6 teams to present to the judges.

Although they QE did not win the overall title, they did take the trio of additional prizes.

“The experience stretched our abilities to the maximum and tested our skills like no other challenge we have faced before,” said Karanvir. “The time pressure was especially overwhelming from the onset. I’m extremely proud of what we achieved as a team, and the hard work and dedication paid off. This was particularly so when we were awarded the prize for Business & Commercial Acumen, which was given to us for our out-of-the box thinking and awareness of real-world events.”

Year 12’s Karanvir Singh Kumar has been named as one of three runners-up in a national schools competition run by economists seeking to challenge conventional thinking in the discipline.

His three-minute film won plaudits from judges for its ideas, its coherence and its clarity.

QE’s Head of Economics Shamendra Uduwawala said: “My congratulations go to Karanvir for his achievement. He formulated an effective argument and then delivered it to camera with considerable aplomb.”

The competition was entitled What’s the 8th Way to Think Like a 21st Century Economist? and was run jointly by Doughnut Economics and Rethinking Economics.

Doughnut Economics is the organisation and website run by Kate Raworth, of Oxford University’s Environmental Change Institute, whose 2017 book, Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist has been translated into 15 languages. She has presented her ideas to the UN General Assembly and has been described by environmental activist and Guardian columnist George Monbiot as “the John Maynard Keynes of the 21st century”.

Rethinking Economics is an international network of students, academics and professionals working towards “building a better economics in society and the classroom”.

In his video, Karanvir began by arguing that the very etymology of the word ‘Economics’ – it derives from the Greek word ‘οἰκονόμος’, meaning ‘household management’ – provides a good starting point for addressing the topic. “The way consumers manage their households is the main influence over what is demanded from the economy and what they consume,” he said.

“Traditionally it’s argued that ‘change demands, and supply will follow’.” But, said Karanvir: “I believe both aspects need to change in tandem to achieve any equilibrium goal. I believe that in  the 21st century we should finally re-centre Economics around the household, and not just by analysing consumer habits, but by aiming to change the deep, underlying human needs behind those habits to more sustainable ones.

“Valuing sustainability in supply, mindfulness in demand, and changing market incentives to reflect sustainability in change is the ‘eighth way to think like a 21st century economist’,” he concluded.

One of the judges, Naila Kabeer, Professor of Gender & Development at London School of Economics, praised his entry: “The different parts of the argument fitted together well. I liked: the focus on the household as a way of thinking about consumers; the need for innovation to make sustainable living easy; and ‘mindfulness in demand and sustainability in supply’. Congratulations!”

Fellow judge Nancy Folbre, Professor Emerita of Economics at the University of Massachusetts at Amherst added: “Good substance with a clear presentation!”

A QE team won praise from the judges for their multi-faceted presentation at the final of an Economics competition run by one of the country’s oldest thinktanks.

The team of four sixth-formers, including the co-presidents of QE’s Economics Society, were shortlisted among the final 12 teams for the final of the Budget Challenge run by the Institute of Economic Affairs (IEA).

Praising the boys on their contribution, QE’s Head of Economics Shamendra Uduwawala said: “Many of the finalists decided to concentrate on single policies whereas the QE boys decided to focus on multiple policies tackling different issues.”

Although the team were not among the eventual winners, Dr Stephen Davies, Head of Education at the IEA, praised their work as “very detailed and well worked-out”, saying: “I liked the presentation and [it was] very strong on an individual level.”

The QE team chosen from Year 12 by Mr Uduwawala consisted of Economics Society co-presidents Rishi Shah and Hanif Gofur, together with Neel Shah and Rushil Shah. They were competing against schools including Harrow, Repton and North London Collegiate School.

For the challenge, each team had to prepare a budget for the UK in the coming financial year, with taxation and spending policy, as well as more briefly analysing the macroeconomic conditions and setting out a broad policy and strategy in response to these.

Rishi said: “We prepared a 5,000-word budget and constructed new policies to address Brexit uncertainty, the UK’s ageing population, the global growth slowdown and Industry 4.0 revolution. Our policies included; eNHS (a centralised online platform for the National Health Service), Project Unicorn (a technology start-up accelerator programme to scale-up new firms into market giants) and a reduction in stamp duty to name a few.”

The final, which was held at the IEA’s Westminster base, began with an introduction from Dr Davies, who recently delivered a lecture at QE on game theory. He discussed the history of the IEA, which was founded in 1955 based on a vision from economist Friedrich Hayek and now reports on economic affairs.

Then the competition began, with each of the 12 teams being asked to give a ten-minute presentation on their budget, followed by a ten-minute cross-examination by the judges. Soon after lunch – a ‘grand buffet’ – came the presentation for the QE team.

“We delivered our vision for the future of the economy and outlined our main policies,” said Rishi. “The judges then questioned our polices in detail and posed questions such as: ‘Why not scrap stamp duty instead of just reducing it?’ to which I answered that the long-term goal is to reduce stamp duty over time and eventually bring in an annual land value-based tax. They also questioned the potential ‘cyber security threat to the eNHS’, to which we replied that blockchain technology would be used to prevent data breaches.”

During lunch, the competitors listened to a talk from Rebecca Lowe, who is the Director of FREER – a major new initiative from the IEA promoting a freer economy and a freer society. She tackled the question ‘Is democracy worth it?’

She argued that democracy isn’t the realisation of an ideal society; instead it is more of a process. She then moved onto the relationship between democracy, the rule of law and the judicial system.

After all the presentations, there was a talk from Dr Kristian Niemietz, the IEA’s Head of Political Economy, who explained some of the key phrases frequently heard in the EU debate. He noted that the implications of Brexit will be on trade, immigration and regulation, as leaving the customs unions and the European single market would end the free movement of people. He used the analogy that the EU is not like being a Netflix subscriber, where either one is, or is not, subscribed. Instead, the EU is a great deal more complex, with many different parts and subsections, and one can be in each of them without being in all of them.

A visiting historian and economist set out how game theory applies across a very wide range of human activity in a lecture to senior boys – while also giving his own views and predictions about Brexit.

Dr Steve Davies is Head of Education at the Institute of Economic Affairs and has previously held academic roles in both the UK and US. He has authored several books, including Empiricism and History (Palgrave Macmillan, 2003) and was co-editor with Nigel Ashford of The Dictionary of Conservative and Libertarian Thought (Routledge, 1991).

In his lecture to senior boys, he illustrated applications of game theory in football, TV game shows and in oligopolies (where a market or industry is dominated by a small number of large sellers). Game theory is the study of mathematical models of strategic interaction between rational decision-makers.

Shamendra Uduwawala, Head of Economics, expressed his gratitude to Dr Davies for his visit, saying: “Game theory is a fascinating area of study, and he contributed significantly to our boys’ understanding of it by using such diverse and interesting examples. It was also good to have his own, well-informed perspective on Brexit, which complemented the lecture given here recently by Clément Leroy, a Research and Policy Engagement Associate from UCL’s European Institute.”

Himself a keen Manchester City fan, Dr Davies chose the penalty shoot-out at the end of the 2008 Champions League final between City’s local rivals Manchester United and Chelsea to illustrate game theory in the sport. United won the match after the team’s goalkeeper Van der Sar first pointed to his left, but then dived to his right, correctly guessing that Chelsea’s Nicolas Anelka would shoot that way. Van der Sar saved and United duly won European football’s top prize.

Dr Davies also looked at game theory in the game show, Golden Balls, and at the dilemma faced by two suspects interrogated for crimes, where they must choose whether the best thing for themselves is to confess, stay silent or betray the other prisoner.

Turning to oligopolistic markets, he examined the issue of such markets involving just two firms. Both firms could benefit from both having high prices, but one will always try to undercut the other firm by lowering prices, he pointed out. This problem could be overcome by collusion, although that is illegal.

Dr Davies also digressed to talk about Brexit. Stating that there was an impression of widespread panic about it within business, he blamed the media because he said they were predicting – incorrectly, in his view – that desperate shortages are inevitable. In terms of companies stockpiling, this is usual in any time of uncertainty and is not uniquely or solely about Brexit.

Alluding to the current febrile political atmosphere, with much plotting going on in Westminster pubs, he noted the similarity to the 1885 general election, the first to be held after an extension of the franchise which meant that for the first time, a majority of adult males could vote.

There would be, he predicted, no second referendum, since a majority of Parliament is against it. A cross-party deal will form – to secure outcomes such as ‘Norway plus’ or continuing membership of the customs union – but he forecast that major splits will continue to happen as the March 29th Brexit deadline approaches.