If the ONS can’t measure productivity, how are we meant to improve it?
The ONS’s shortcomings are far from trivial, its bad maths is holding back the UK economy, writes Paul Ormerod The Office for National Statistics (ONS) has come in for a lot of criticism for the accuracy of its labour market data. More specifically, its estimates of how many people there are in employment have become less […]
If economic experts wield political power, we’ll get dragged into fiscal groupthink
Even before the double win in last week’s by-elections, Labour was behaving like a government-in-waiting. Apparently the party has begun drafting the bills for the initial pieces of legislation it will enact after the election. When George Osborne was at the Treasury, the Conservatives created the Office for Budget Responsibility (OBR). This meant responsibility for […]
If politicians keep ignoring economists, our strategies will never be cost-effective
Economists have been getting bad press because of the antics of the Bank of England and its Monetary Policy Committee. We are suffering from what we, as economists, describe as a “negative externality”. It might be convenient for you to drive your car, for example, but the emissions which this creates have a negative impact […]
The Bank of England needs trade unionists and social scientists to stop groupthink
The Bank of England’s persistent failure to meet its inflation target over a long period of time is a matter of public record; the huge increase in inflation over the past 18 months or so is simply the most spectacular of the Bank’s errors. Every single member of the Monetary Policy Committee (MPC), both those […]
Our regulators are too close to those they should be regulating – and this is a problem
Late last week, news slipped out that the Treasury had asked Parliament to authorise up to £200bn to cover losses from the Bank of England’s quantitative easing (QE) scheme. To help the economy get over the financial crisis of the late 2000s, the government agreed to cover any losses the Bank made on bonds bought […]
Our scientists were given responsibility in the pandemic but no public accountability
Last week, Rishi Sunak rehashed old wounds and stirred up more controversy over lockdowns during the height of the pandemic. The former Chancellor now says scientists were given too much power, where policy choices should have rested with those elected policy makers known as our leaders. Unlike most other government policies, there was little cost-benefit […]
As we look back on pandemic mistakes, we need to count livelihoods in our losses
Ministers don’t need to face the inquiry into the Covid-19 pandemic until next spring, the chair of the probe, Heather Hallet, announced this week. As part of its mandate, the inquiry will “listen to and consider carefully” the experiences of those who lost family members or “have suffered hardship or loss” as a result of […]
We need to stop comforting ourselves with the myth of the all-powerful central bank
Inflation continues to be a major problem for policy makers. The annual rate of price increases hit 7 per cent last month and could be in double figures later this year. This projection is far from being a fantasy. On some measures, annual inflation in America is already over 10 per cent. Rather bizarrely, the […]
Andrew Bailey fell asleep on inflation and now it is workers who will face the flames
Is there a comfortable chaise longue in the office of Andrew Bailey, Governor of the Bank of England? I think we should be told. Because it has become apparent that the Bank has been asleep on the job. In the year to December 2021, consumer prices rose by 5.4 per cent. We have to go […]
The Bank of England has developed a mythical stature – it’s time to burst it
The UK, along with the rest of the Western world, has just lived through a period of low inflation. In the 25 years since the mid-1990s, inflation has averaged just 2 per cent a year. It is enough to double the price level every 35 years, but a far cry from the double-digit rates seen […]
