Despite the UK’s referendum on 23 June, David Cameron has so far not decided to trigger Article 50 of the Lisbon Treaty, which outlines how a country can voluntarily leave the EU. Sebastian Koehler argues that this process should not be delayed any further given the uncertainty which is damaging the UK economy. He writes that while Britain remains […]
Referendums on major issues usually create a degree of uncertainty which can have a knock on effect on a country’s economy. Swati Dhingra writes that uncertainty caused by the UK’s EU referendum has already had a negative economic impact, with some British businesses putting the hiring of new staff on hold until after the vote. But if the UK […]
In his book, The Truth About Inflation, global economist and managing director at UBS Investment Bank, Paul Donovan, gives global investors of all abilities the tools to understand inflation and how they can protect their portfolios against its risks. The book challenges lingering myths and misperceptions surrounding inflation, helping readers to better grasp what it actually is and what it […]
What effect would a Brexit have on the UK’s economy? Kent Matthews gives three reasons why Britain leaving the EU may have a positive economic impact for the country. He argues that a Brexit would reduce prices, free businesses from over-zealous regulations, and allow the UK to redirect the money it currently pays into the EU budget toward more pressing priorities.
The most […]
One of the key issues in the context of the UK’s EU referendum is the effect a Brexit would have on the country’s economy. Iain Begg assesses the economic claims that have been made so far in the campaign, noting that there have been misleading figures put forward by both sides of the debate.
Two recent assessments of the economics […]
Indian PM Narendra Modi is in Europe this week and will be attending the thirteenth India-EU summit taking place in Brussels today, 30 March. The hottest item on the agenda is likely to be the EU-India broad-based trade and investment agreement. LSE’s Swati Dhingra contends that this is a one-sided agreement, favouring foreign investors while leaving Indian consumers vulnerable, […]
A double bind: Cameron urges non-discrimination in one policy area, while wanting to discriminate in another
The UK government has entered the final stages of its negotiations with the EU. The issues of immigration control and the refugee crisis seem to overshadow the debate. Yet, as Waltraud Schelkle points out, the “Dear Donald — Yours David” letter of Prime Minister Cameron to European Council President Tusk reveals that the other leading issue is financial integration in a European Union with […]
David Cameron has promised to hold a referendum on Britain’s EU membership in 2017. Costas Milas argues that talk of an exit from the EU has been a hugely unnecessary distraction that has led to economic uncertainty and higher borrowing costs. He shows this by plotting the 10-year UK yield together with the Google trends search queries index for “Brexit”. Policymakers […]
Falling support for the European Parliament, not the economic crisis, has led to a decline in support for the EU in Spain and Portugal.
In April, a major Eurobarometer study reported that there had been a decline in support for the European Union across Europe, especially in countries where the Eurozone crisis’ effects had been most severe. Mariano Torcal takes a closer look at the reasons behind falling support for the EU in Spain and Portugal. Using panel data, he finds that a significant […]
John Van Reenen reacts to the news this week that the UK has avoided economic contraction in the last quarter. Whilst Osborne may see this as cause to celebrate, there is nothing commendable about an economy that continues to stagnate. This news should not be taken as a sign to continue down the path of austerity. Rather, a policy change, starting […]
John Van Reenen analyses the economic legacy of Margaret Thatcher. In the late 1970s, when the UK was behind other developed nations in terms of material wellbeing, her supply side policies spurred economic revival. There is a substantial body of evidence suggesting that a range of important policy changes initiated by her underpinned these economic gains. Nevertheless, there are many important economic and […]
The uncertainty created by David Cameron’s policy on EU membership may cost the UK’s already troubled economy.
Prior to UK Prime Minister David Cameron’s speech on the country’s relationship with the EU, Michael Emerson set out several hazards that his strategy was expected to face. Revisiting these hazards after the speech, he finds them to be mostly confirmed. He argues that Cameron’s policy is badly defined, politically unmanageable, creates uncertainty for investment, and implies a difficult and clouded […]
Despite rising unemployment and a lack of economic growth, Greece cannot afford to ignore the challenge of controlling inflation.
Since the beginning of the eurozone crisis, Greece has experienced a sharp fall in GDP and a large increase in unemployment. Nicholas Apergis argues that another policy challenge facing Greece is also highly significant: controlling inflation. Assessing the inflation dynamics within the country between 1981 and 2009, he outlines three dynamics important to understanding Greek inflation: inflation persistence, inflation spillovers […]
The institutional foundations of the German economy explain why it handled the crisis more effectively than other European states
Germany’s economy has experienced a transition from the ‘sick man of Europe’ after unification in 1990, to becoming a relative ‘winner’ during the current economic crisis. Gregory Jackson and Arndt Sorge argue that while explanations for economic performance typically focus on macroeconomic and fiscal policies, the evolution of institutions within a state can also be highly significant. The institutional changes […]
Migrants and their Money highlights how migrants negotiate the complex financial landscape they encounter and the diverse formal and informal ways in which they manage their money in London – a city that is often considered the financial capital of the world. Howard Jones finds the book provides a very readable, informative and illuminating account of the work and lives of diverse migrant communities. […]
The EU’s Nobel Prize means that it must do even more to overcome its current crises, and increase its role as a force for peace and prosperity.
This morning the Nobel Prize Committee announced that they had awarded its annual peace prize to the European Union in recognition for its efforts in promoting peace and reconciliation in Europe over the past 60 years. Maurice Fraser argues that it would be a pity if the award goes down in the history books as belated recognition of a job […]
Politicians in Cyprus need to move on from the ‘blame game’ for the country’s economic woes if they are to make badly needed economic reforms.
With massive amounts of non-performing loans, a high debt-GDP ratio, and rising unemployment, the Cypriot economy now faces painful but necessary measures to kick start recovery. Adonis Pegasiou argues that these badly needed reforms are being stalled by rows between the government and opposition parties who refuse to share the blame for Cyprus’ economic troubles. The greater they delay, however, […]
Poland has survived the economic crisis remarkably well, but the country faces a future dilemma over adopting the euro.
Poland has recorded impressive growth figures since the beginning of the global financial crisis. Witold M.Orłowski assesses the factors behind the country’s economic success, noting that the internal strength of the economy and its relatively low exposure to troubled southern European states have provided key advantages. The main long-term threat stems from the country’s future participation in the euro. If […]
Spain is navigating through stormy economic waters, but the time for further structural reform has come.
Spain’s ten year bond yields have soared to over 7 per cent in recent months, and its banks have been bailed out by European partners. But, as Manuel Muniz and Alexandre Pérez argue, there are reasons to be hopeful about the Spanish economy. Productivity has improved, exports are climbing and debt levels are not as alarming as some figures suggest. […]