Recent days have seen a flurry of activity and pronouncements on the status, rights and future migration prospects of EU citizens in the UK: not just the Lords’ vote to amend the ‘Brexit bill’ to ‘guarantee the rights’ of currently resident EU citizens irrespective of Brexit, but reports from the Commons ExEU and Lords EU Home Affairs parliamentary committees. That’s even before the […]
The financial market landscape has changed dramatically since the global financial crisis nine years ago. A key feature of today is the dominance of central banks in financial markets, especially in Europe. However, central bank activism has crowded out long-term investors (insurance companies, pension funds and sovereign wealth funds).
Not only do long-term investors hold assets worth about USD 70 trillion […]
In 1850, the French economist Frederic Bastiat wrote the parable of a shopkeeper whose window is smashed. Aghast at the damage, the shopkeeper is consoled with the idea that at least his broken windows are good for the economy, since “Everybody must live, and what would become of the glaziers if panes of glass were never broken?”
The alcohol industry is, in […]
This post explores the relationship between some relatively new concepts in economics – slow living, slow food, slow writing and the green economy. The goal is twofold – discussing the possibilities opened by these exciting new concepts, in terms of an increase in the quality of life combined with an environmentally sustainable lifestyle, as well as ascertaining what they […]
What’s at stake: After years of deflationary pressures and anaemic economic performance, inflation seems to be on the rise again, both in the US and the euro area. Does this comeback mark a return to target? Will it be sustained, and what should central banks be thinking? These are among the questions raised in the blogosphere.
Dieter Wermuth is happy […]
Let me begin with a thought experiment. Imagine you have a Platinum health plan, meaning that your insurance covers (almost) all the costs for a very large variety of treatments and diagnostic tests – in exchange, of course, for a high monthly premium. After years of paying the premium without ever needing to use medical insurance, eventually the day […]
“Europe is uninvestable,” a fund manager declares, while carving a slice of roast lamb over dinner in Mayfair, London. “With Marine Le Pen in France, Brexit and populists all over the place, we prefer to avoid any Eurozone risk.” The other fund managers in the room nod, in silence. The case for investing in Eurozone assets has never been […]
Do resource booms enhance growth in a country or lead to a ‘crowding out’ of other tradable industries, such as manufacturing? Traditional theories suggest that crowding-out effects dominate. The idea is that gains from the boom largely accrue to the profitable sectors servicing the resource industry, while the rest of the country suffers adverse effects from increased wage costs, […]
Most research on happiness relies on surveys that ask people to reflect back on and evaluate their experiences ‘these days’ or ‘nowadays’. In doing so, respondents usually attach weight to events that are related to their overall sense of wellbeing or satisfaction with their lives.
These studies find consistent evidence that paid work contributes substantially to overall life satisfaction and […]
A standard assumption in policy analyses and political debates is that classical liberal or libertarian views represent a radical alternative to a progressive or egalitarian agenda.
In the political arena, classical liberalism and libertarianism often inform the policy agenda of centre-right and far-right parties. They underpin laissez-faire policies and reject any redistributive action, including welfare state provisions and progressive taxation. […]
UK Prime Minister Theresa has begun to set out her vision for Brexit. She was clear that the UK will be leaving the Single Market, but she also alluded to a possible sector-by-sector approach to trade negotiations with the EU.
Presumably this will focus on sectors of great economic relevance. The financial and automotive industries have already received much attention, […]
Does economic fortune persist in the long run? This question has been the object of intense research; while some studies find a reversal at the national level for colonised countries (Acemoglu, Johnson and Robinson 2002) others show that fortune has largely persisted for thousands of years (Comin et al. 2010; Ashraf and Galor, 2013), especially in terms of populations […]
Quite unexpectedly, George Osborne, the Chancellor of the Exchequer at the time, used his first Conservative Budget, in July 2015 to slash benefits for low-paid workers – and simultaneously forced businesses to pay them more. The British Government’s new National Living Wage became law on 1 April 2016. The wage starts at £7.20, increasing to £7.50 from April 2017, […]