Eight prominent economists have written a letter to the Financial Times arguing that the UK needs a ‘step increase’ in public investment in order to boost growth and to fix social and environmental problems. There is clearly something in this, but many risks too. As the writers correctly note, there is an emerging consensus that … Continue reading Yes to a ‘step increase’ in public investment – but only a small one
Tag: inflation
Labour’s plans for pensioners don’t go far enough
The Labour Government’s determination to restrict eligibility for Winter Fuel Payments is the sort of decision that the fictional Sir Humphrey Appleby would describe as ‘courageous’. The House of Commons’ motion calling on the Government to delay the implementation of this change has no real chance of passing. But why on earth are Keir Starmer … Continue reading Labour’s plans for pensioners don’t go far enough
A presentation on Brexit
Here are the slides (with a few tweaks and additions) from a presentation I made recently to an audience of economists in London. The presentation covers some strengths and weaknesses of the OBR's Brexit analysis and of 'doppelganger' models, and attempts to correct some common misunderstandings. It also includes some of my favourite charts! Brexit … Continue reading A presentation on Brexit
Bank of England rate cut should be the first of many
The Bank of England’s decision to cut UK interest rates to 5% this week was finely balanced but surely correct. The aim now should be to return rates to a 'neutral' level of around 4% early next year. The obvious starting point is that CPI inflation has now been at or very close to the … Continue reading Bank of England rate cut should be the first of many
Plain-speaking Economics 