Sunday’s Observer led with the dramatic headline ‘Revealed: the £30bn cost of Liz Truss’s disastrous mini-budget’. Apparently, the former PM is responsible for half of the estimated £60bn fiscal hole that Jeremy Hunt intends to fill on Thursday with tax increases and spending cuts. But if you are suspicious about this claim, then you are right to … Continue reading Is Liz Truss really to blame for £30 billion of austerity?
Category: Applied economics
What Mark Carney got wrong
In a recent interview with the Financial Times, former Bank of England Governor Mark Carney made the striking claim that ‘in 2016 the British economy was 90% the size of Germany’s. Now it is less than 70%’. This claim is garbage, for two reasons. Unfortunately, it is just one of a tsunami of fake statistics … Continue reading What Mark Carney got wrong
Why the Bank of England was right to raise rates
Many people have been baffled by the Bank of England’s decision to raise interest rates by a historically large three-quarters of a point this week, despite forecasting that the UK economy is sliding into recession. I understand this confusion, but there are three reasons why rates had to be increased. First, the job of the … Continue reading Why the Bank of England was right to raise rates
Are tax rises inevitable?
If you believe the smoke signals from the Treasury – and you probably should – the Budget on 17 November will have to include big increases in tax in order to plug a ‘black hole’ in the public finances. But is it inevitable that taxes will have to rise and, if so, what’s the best way to … Continue reading Are tax rises inevitable?
Plain-speaking Economics 