Forward guidance is just another delusion foisted on us by mainstream macroeconomics November 22, 2016 The governor of the Bank of England, Mark Carney, was on good form last week when he appeared at the Treasury Committee of the House of Commons. Asked what “forward guidance” meant, he answered smoothly: “The thing about forward guidance is that it is guidance that is forward. Which is not to say it is meant [...]
Massive investment in education is the ultimate fiscal stimulus for Brexit Britain November 22, 2016 We learnt of three priorities for government spending recently: roads, railways and flood defences. As an economist, I take a slightly different view of what’s needed to drive the UK economy at this pivotal time. To quote a former politician, my three priorities for public infrastructure in today’s Autumn Statement would be “education, education, education.” In [...]
Chancellor Hammond must focus on the quality of infrastructure spending, not its quantity November 22, 2016 Keynes is back, or so it seems. Both left and right wing movements across the West are calling for greater government borrowing to finance infrastructure projects. In the US, Donald Trump is proposing to invest $500bn. In the UK, Labour’s John McDonnell wants an even more lavish £500bn programme, equivalent to around a quarter of [...]
As Trump prepares to dump the TPP Pacific free trade deal, is globalisation going into reverse? November 22, 2016 Dr Madsen Pirie, founder and president of the Adam Smith Institute, says Yes. It looks very much as if globalisation has reached its high water mark and may be slipping back. Donald Trump's pledge to pull out of the Trans-Pacific Partnership deal comes hot on the heels of the declaration by many involved that the [...]
Lifetime Isa: The making of a monster November 22, 2016 While the original intentions behind the design of the Lifetime Isa in 2014 were understandable, as its launch date nears, it is set to confuse the savings landscape and go against what it was initially crafted for. In his proposal, Michael Johnson said he created the Lisa because “under-35s are so disengaged from private pensions”. He [...]
Radically simplify savings and investment so Brits can wave goodbye to exorbitant costs November 22, 2016 Chancellor Philip Hammond recently said: “now isn’t the time for lots of small changes. This is a time for consistency, preparation and steadfastness.” The government needs to follow through with this commitment and heed its own advice by immediately halting the slide towards complexity in investment and savings. The current over-complication, exacerbated by too much [...]
Now is the time for the government to intervene on energy prices and override the Big Six firms November 22, 2016 This winter it is imperative that something is done to fix our broken energy market. Seven out of 10 households are still on the highest priced deals, paying some £300 more than they should – and too many of these are the most vulnerable in our society. The Competition and Markets Authority investigation report, published [...]
The gig economy won’t be killed off so easily November 22, 2016 The gig economy in the US has reached its peak – at least that's according to JP Morgan's latest research. Some are suggesting recent legal action could sound the death knell of the UK gig economy – but in my view, these concerns are misplaced and underestimate the demand for innovative, tech-enabled services. Moves by [...]
Autumn Statement 2016: Philip Hammond shouldn’t base changes to pensions tax relief on older people’s situation today November 22, 2016 According to some reports, tomorrow’s Autumn Statement could be both the first and last for the new chancellor, because Philip Hammond is said to be in favour of sticking to a single annual Budget. We’ve become used to the biannual format, with a fresh set of policies emerging from the chancellor’s red box twice each year. [...]
Theresa May takes aim at the wrong energy targets November 21, 2016 Prime Minister Theresa May appears to be limbering up for a three-pronged attack on “rip-off” energy firms, failing broadband providers and any housebuilders that stockpile land. On the energy front, speculation has been mounting that the so-called big six energy firms will soon be told to offer fewer, simpler tariffs and make switching suppliers easier [...]