Category: Applied economics

Better news on growth, but still not good enough

The latest GDP data should ease fears that the UK economy is sliding back into recession. But growth is still too weak to fix the public finances, or encourage hiring and investment, and there are already signs that any positive momentum is fading again. First, though, the good news. GDP grew by 0.3% in the … Continue reading Better news on growth, but still not good enough →

The Government cannot take credit for the cuts in UK interest rates

The Bank of England’s decision to trim its key interest rate by another quarter point this week was widely expected, but there is still plenty to write about. Unfortunately, little of this is good news. For a start, why on earth is the Monetary Policy Committee (MPC) still cutting rates when the Bank itself now … Continue reading The Government cannot take credit for the cuts in UK interest rates →

US-EU trade ‘deal’ avoids an even worse outcome, but this is still little to cheer

Brexiteers can be forgiven for indulging in a little ‘schadenfreude’ at the news that the EU has agreed the principles of a trade deal with the US on worse terms than the UK was able to achieve. Nonetheless, there are very few winners here. For a start, a final agreement is still some way off. … Continue reading US-EU trade ‘deal’ avoids an even worse outcome, but this is still little to cheer →