Imagine that the government could simply print whatever amount of money it needed to guarantee everyone a decent income, fantastic public services, and a secure job if they wanted one – with enough left over to save the planet too. That, for many, is the promise of a new economic paradigm known as “Modern Monetary … Continue reading A(nother) critique of ‘Modern Monetary Theory’
The Chancellor has asked the Office for Tax Simplification to undertake a review of Capital Gains Tax (CGT) to ‘ensure the system is fit for purpose’ and to look again at how capital gains are taxed compared to other types of income. But should he go further and simply abolish CGT completely? Philip Booth, the IEA’s Senior … Continue reading IEA Debate: Should Capital Gains Tax be abolished?
Rishi Sunak is having a relatively good crisis. The Chancellor and his team certainly deserve plenty of credit for the way the Treasury has shielded the large majority of businesses and jobs during an unprecedented slump in economic activity. But this task has been made easier by the broad consensus on the appropriate policies and … Continue reading Now is the time for the Government to make the bold decision to do less
This may sound like heresy to many economists, not least my former colleagues at the Treasury, but I’m coming around to the view that fiscal rules are overrated. Of course, fiscal credibility is important and must be protected. But fiscal rules are often more of a hindrance than a help. For a start, rules on … Continue reading What should we do with the fiscal rules?