Budget 2017 and the economy: bad news all round

Following the 2017 Budget, Michael Ellington and Costas Milas offer some first comments on why, regardless of whether one supports Britain’s exit from the EU or not, the current situation is not good news.

To keep Brexiteers off his back, Chancellor Hammond did not spell it out, but Brexit-related uncertainty is taking its toll on the economy: anaemic GDP growth […]

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    Machonomics: George Osborne’s legacy to UK macroeconomic governance

Machonomics: George Osborne’s legacy to UK macroeconomic governance

George Osborne was a purveyor of machonomics, an approach to economic policy-making revolving around seemingly bottomless reserves of macho self-confidence, writes Matthew Watson. Here he argues that Osborne modelled himself in this way on the optimal policy-maker of the so-called time consistency problem of abstract economic theory.

George Osborne was always accused of having lived a charmed life by those […]

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    Avoiding talk of the deficit has been a systematic feature of Labour’s contribution to the economic debate

Avoiding talk of the deficit has been a systematic feature of Labour’s contribution to the economic debate

Ed Miliband was roundly mocked for ‘forgetting’ to mention the deficit in his speech to the Labour Party conference. However, as Jack Blumenau shows in this post, avoiding talk of the deficit is a systematic feature of Labour’s contributions to the political debate about the economy over the past four years. In a statistical analysis of parliamentary speeches, he […]

Five minutes with Tim Harford (Part 2): “The question is: Can we all become robot overseers or are some of us just not up to it?”

In part 2 of our conversation with Tim Harford, author of The Undercover Economist Strikes Back, we discuss a range of topics, from the impact of technology on the labour market to ‘happynomics’. Tim recently gave a public lecture at the LSE in which he discusses his new book in greater depth.  In your new book about macroeconomics, you touch on the discipline’s […]

Contrary to what is promoted by the EU’s central bankers, higher taxes tend to coincide with lower deficits and low debt

Across the eurozone, central bankers and politicians advocate reducing taxes in order to reduce government deficits. But are lower taxes the key to deficit reduction? Craig J. Willy looks at evidence from across the OECD and finds that higher taxes tend to be correlated with lower levels of public debt, and greater fiscal sustainability. In addition, greater levels of income equality in […]

April 13th, 2013|Europp|2 Comments|

The government’s austerity agenda is one of the factors responsible for the poor performance of the UK economy

The question of what role, if any, austerity has played in the performance of the UK economy has come to dominate recent political debate. Simon Wren-Lewis probes the evidence and points out that the theory that fiscal multipliers are (perhaps much) larger than 1 if interest rates are stuck at zero has stood up pretty well.  There has been some recent debate about […]

If the economic outlook continues to worsen, George Osborne will have to relax the pace of deficit reduction and take measures to increase demand in the economy.

Yesterday saw the Chancellor’s autumn statement. Tony Dolphin argues that the measures announced in this ‘mini-budget’ are not a real plan for growth. If increased demand is not generated – and only the government is in a position to do this – then unemployment and public sector borrowing will continue to rise in excess of previous predictions. Eighteen months ago, […]

Poorly targeted short term initiatives to revive the UK’s flagging growth rates are likely to make things worse. Consistency in economic policy is key in delivering long-term growth.

In the face of lower than expected growth, pressure is building on the Chancellor George Osborne, to bring forward strategies that will boost employment and growth in the short term. Will Tanner argues that poorly targeted strategies like support for small and medium-sized enterprises, increased infrastructure spending, and support for new mortgages are actually more likely to make things worse. […]