Like many others we were frustrated about the absence of both reliable and (almost) real-time economic indicators about the true state of the economy post-Brexit. Survey data was plentifully available, but often contradicted itself, and appeared to be heavily biased towards the political leaning of the sponsor. Hence, we decided to look for a truly independent and reliable indicator, […]
Private equity (PE) firms typically raise capital to establish limited life funds of 10-14 years duration. They use these funds to acquire a portfolio of existing firms. Each portfolio firm is acquired in a transaction which combines capital from the fund with third party debt finance. The debt is secured against portfolio firms’ assets and/or future cash flows. PE […]
Trump has set out a plan to repatriate highly-paid manufacturing jobs to the US. But the idea that manufacturing jobs are better paid than service roles is a myth. Moreover, labour markets are slow to shift between sectors. An aggressive trade policy may create some jobs in manufacturing but will not be a benefit to US citizens in general.
Just before announcing that he was bringing austerity to an end, Chancellor Phillip Hammond introduced a substantial reduction to the benefits cap – of £25,000 per year – that the Coalition government had imposed in 2010. The benefits available to workless households – over half of which are single parent families led by women – will now be reduced […]
Image by Francois Van, under a CC0 licence
Over the past decades the UK economy has become a party to global production chains in a number of sectors. Benefiting from tremendous investment by many of the world’s major multinational corporations, the UK has become an export leader, especially for automobiles and pharmaceutical products. We ask whether the UK’s engagement in European […]
Skyscrapers, by Unsplash, under a CC0 licence
Brexit is a monumental event that is likely to have serious consequences, raising challenges while creating international business and entrepreneurship opportunities for companies around the globe. This effect is likely to be felt acutely by North America, which has historically maintained strong political, cultural and economic relationships with the UK. The June 23, […]
Business/cash, by PublicDomainPictures, under a CC0 licence
Christopher Hood and Rozana Himaz’s retrospective on UK austerity argues that the current ‘period of public spending restraint’ fits into a pattern of longer but less deep government actions. But their account contains a logical error that leads to underestimating both the severity of the present action and the damaging effects on the economy as a […]
EU flag, by GregMontani, under a CC0 licence
Have the reports about the death of the Eurozone been greatly exaggerated? How concerned should one be about the stability of the Eurozone? This column summarises a report we prepared for the European Parliament addressing this issue.
A good way to think about the Eurozone’s stability and cohesion (or asymmetry and imbalances, if […]
Hamburg Port, by moerschy, under a CC0 licence
Over the past three decades, countries and trading blocks around the world have undertaken substantial efforts to reduce barriers to trade. In recent years, these efforts have mainly taken the form of regional free trade agreements (RTA) in which countries liberalize trade outside the multilateral framework of the World Trade Organization.
The hope […]
G20 April 1st, by Jonny White, under a CC BY 2.0 licence
The election of Donald Trump and the Brexit vote in the UK have both been widely interpreted as a revolt of the economically ‘left behind’: a protest by working class voters at the impact of globalisation on their jobs and living standards. In neither case is this the whole […]
Clothing factory, by Jones Management, own work, under a CC-BY-SA-4.0 licence
The epicenter of the political earthquake that struck the United States on Nov. 8 ran through heartland states dominated by voters who told interviewers they felt left behind by the forces of globalization and technological change. Donald Trump promised to change all that: “The forgotten men and women of […]
Corporate building, by groar, under a CC0 licence
Firms are important for workers’ wages. This blog post investigates the extent to which differences in firms’ pay are related to differences in firms’ physical productivity. Based on matched employer-employee data from Sweden, it finds that firms that benefit from positive productivity shocks increase wages of incumbent workers. The impact is larger if […]
A biotech lab by PublicDomainPictures, under a CC0 licence
There is good news for British manufacturing. Since 2011, the historical decline in jobs within the sector has gone into reverse, with the number of jobs having risen by around 5 per cent. There had been a decline in jobs of 21 per cent from 1981 to 1991, 15 per cent from 1991 […]