A new series from the ONS shows an index of labour costs per hour. (this is an experimental series and looks as if it is not seasonally adjusted) Labour costs seem to be persistently highest in Q1. Labour costs per hour are primarily comprised of 1. Wage costs per hour but also 2. Non-wage costs. …
The paradox of toil states that under certain conditions if people wish to work longer hours, this can cause falling real wages and rising unemployment. The paradox is that individuals have an incentive to work longer, but if everybody wants to work longer hours, it can actually cause unemployment. The paradox of toil only works …
In the past five years, the UK has experienced an unprecedented period of stagnant economic growth. The fall in real GDP is longer than even the great depression. Given the unusually depressed nature of the economy, what policies could the UK pursue to boost economic growth and recovery? Here are eight possible policies with their …
In 2012, the EU introduced a new form of its growth and stability pact. The main rules for EU fiscal policy are: Total Government debt must not be more than 60% of gross domestic product; The Government deficit must not be more than 3% of GDP except in particular circumstances. (Source: EU, Current EU rules) …
Recently, the Economist published an article (You can fool some of the people…), pointing out several economic commentators were increasingly critical of UK economic policy and the Bank of England’s monetary policy in particular. Is the Bank of England really losing grip of monetary policy? or are they doing the best job in difficult circumstances? …
In the post-war period, consumption of vehicle fuel (petrol / diesel) increased dramatically as car ownership rose and more journeys were made by car. However, since 2007, there has been a significant drop in vehicle fuel consumption, with demand falling over 20% Many factors affect demand for vehicle fuel, including price, income, fuel efficiency, quality …
Readers Comment from post: Should the UK join the Eurozone So now it is 2013. Britain has spent a number of years with its interest rate set at just about zero, has entered a triple recession, has lost it’s AAA credit rating and Sterling is only worth €1.15 a drop of over 30% against the …
The great moderation refers to a period of economic stability characterised by low inflation, positive economic growth, and the belief that the boom and bust cycle had been overcome. In retrospect, economists look back on the great moderation in a different light because although inflation was low, there was great volatility in financial markets and …