The UK has not yet left the European Union and the long-term economic effects of Brexit remain unknown. However, one of the trends which has attracted attention so far is a drop in real wages for UK workers, which many economists have put down to the immediate depreciation of the pound after the referendum and a subsequent rise in […]
When it comes to managing an economy should policymakers act on the basis of technical expertise or in accordance with the views of voters? Simon Wren-Lewis writes that economists need to act more as a collective, and do a much better job of articulating consensus viewpoints to the public when it comes to important questions of economic policy.
In the […]
The Eurozone crisis does not necessarily prove that a monetary union also requires fiscal/political union.
A common argument is that the Eurozone crisis necessitates greater fiscal and political integration among countries using the single currency. Simon Wren-Lewis disputes this idea, arguing that we should be cautious about forming concrete conclusions from a single observation. He states that the lesson of Eurozone failure is largely about bad design, rather than disproof of concept. Is a monetary […]
Much of the speculation leading up to the UK Chancellor’s Autumn Statement, as well as the debate which followed it, centered around George Osborne’s fiscal rules. Simon Wren-Lewis examines the British government’s surviving fiscal rule and some of the difficulties which surround it. In one area, macroeconomic policy in the UK is well ahead of the US and the eurozone: the […]
The work of John Maynard Keynes shows us that counter-cyclical fiscal policy and an easing of austerity may offer a way out of the Eurozone crisis.
Debates between ‘Hayekian’ and ‘Keynesian’ perspectives constitute one of the main conceptual fault-lines of the Eurozone crisis. In the second of two EUROPP articles covering this debate, Simon Wren-Lewis looks at how the current programme of austerity and the view that the private sector can do little wrong may be driving the continent further into recession. Policymakers must instead embrace the […]
A No vote in Ireland’s referendum on the Fiscal Treaty might contribute to the demise of the current mindset of austerity.
Polling in the lead up to Ireland’s vote on the Fiscal Stability Treaty has pointed to the endorsement of the Treaty. But will the Treaty be a positive force for Ireland, and for Europe? Simon Wren-Lewis argues that the Treaty is ultimately flawed as it treats the current crisis as stemming from massive public sector debts, whilst ignoring that these […]