The coming explosion in natural debt is a serious risk to the economy
Martin Feldstein of Harvard is an economist who should always be taken seriously. Writing in 1997 about the forthcoming introduction of the euro, for example, he argued that “the adverse economic effects of a single currency on unemployment would outweigh any potential gains from trade flows”. He went on to predict that the euro was […]
If it costs nothing, is it worth anything?
Most of us don’t love our banks. We have all experienced the unanswered letter, the seemingly interminable waits on hold before being put through to someone who gives the impression of auditioning for the infamous “computer says no” television sketch. Yet we are surprisingly loyal to our current accounts. Figures from Bacs suggest that around […]
Why a sugar tax would be a big fat failure: People are too smart for central planners
Government ministers have bowed to pressure. They have published the report by Public Health England (PHE) which calls for a tax of up to 20 per cent on sugary drinks and foods. If the tax reduced sugar intake in line with the recommendations, it is claimed that more than 77,000 deaths could be prevented in […]
Two cheers for the global recovery, but doubts remain in the Euro zone
Worries are growing about some of the countries in the Euro zone slipping back into double dip recession. By convention, a recession is when national output (GDP) has fallen for two successive quarters. But this is far from being news. In a substantial number of economies, output is lower than it was not just two […]
