Economic Policy

Richard Layard explains the Manifesto for Economic Sense

Thousands of economists disagree with the austerity policies being followed in so many countries. Yet few speak out and I am one of the guilty ones. That is why Paul Krugman and I have now written a ‘Manifesto for Economic Sense’ which is reprinted below. We hope this will be signed by thousands of economists. More importantly, we hope that […]

Jobs in a recession: now would be a good time for the government to conduct infrastructure projects but a bad time to cut unemployment benefits

Pascal Michaillat discusses research on employment during recessions, arguing against unemployment benefit cuts as a tool to incentivise job-seeking and suggesting that public employment is especially effective at stimulating the economy – without crowding out the private sector – at any time when the labour market is depressed. Anyone who has watched Charlie Chaplin’s film Modern Times knows that people queue for […]

Five minutes with Steve Keen: “The better of two bad policies is the stimulus approach”

Steve Keen was one of the few economists who publicly predicted the Great Recession that still troubles developed economies. In this interview with Joel Suss, he explains how he came to that conclusion, offers his view on UK economic policy, and presents his own policy ideas for ending speculative, risky behavior that created the debt burden to begin with. Can you explain […]

The TaxPayers’ Alliance and Institute of Directors have just produced a new report on the British Tax System. Some parts are good, some are plain silly

Tim Leunig reviews a new lobbying report which has garnered media attention in calling for reform of the tax system.   Let’s get the silliness out of the way first. The report wants the tax-to-GDP ratio to be 33 per cent, and marginal tax rates (including employers’ national insurance) no higher than 30 per cent. They believe this will spur growth. The […]

Ahead of a week of summits, campaigners will be making the case for a Europe-wide financial transactions tax

Last year, the European Commission proposed the introduction of a financial transactions tax, which could raise up to €60 billion annually. While many European economies are likely to introduce such a tax, some, such as the UK are opposed. Ahead of a week of important summits in Europe and elsewhere, Owen Tudor argues that this is the perfect time for pro-‘Robin Hood […]

May 19th, 2012|Europp|0 Comments|

Don’t take a trip on this Double Dip

The British economy is now officially in a double dip recession. John Van Reenen looks at how we got here and argues that the ideologically motivated austerity programme has failed.  The Office of National Statistics announced yesterday that the British economy shrank in the first quarter of this year, just like it did in the last three months of 2011. The fall […]

Northern prosperity will increase national prosperity but a comprehensive economic strategy is needed to address structural constraints

The North of England needs more than elected mayors to unleash its economic potential. Graeme Henderson argues the playing field must be levelled before the North’s potential to lead the UK’s economic recovery is actualised. On 3 May, Liverpool and Salford will get their first directly elected mayors and many other English cities decide on the same date whether to […]

Ignoring the role of private debt in an economy is like driving without accounting for your blind-spot.

Steve Keen argues that neoclassical economists have a blind-spot when it comes to the role of private debt in macroeconomics. They should be worried by the incredibly high UK levels and be seeking ways to avoid the next crash. As a car driver, you have surely had the experience of changing lanes and being beeped by a car with which […]