Browsing All posts tagged under »GDP Growth«

Why A Slower Pace of Government Deficit Reduction Isn’t a Big Problem

October 18, 2010


With the unequivocal manner in which some UK Coalition Government have been speaking recently, people might be forgiven for thinking that the pace of government deficit reduction set out by George Osborne in the 10th June 2010 emergency budget had instead been handed-down to him by God at Mt Sinai.  However, as noted at a […]

Why We Need The Recession

October 15, 2010


While the thrust of this article is undoubtedly controversial, I feel that many people are forgetting that a recession is a normal part of the business cycle and the processes that take place during a recession are necessary to lay the groundwork for any recovery.  Below are some of the key reasons why we need […]

The Emerging Split on the Bank of England’s MPC

September 29, 2010


The Bank of England’s Monetary Policy Committee (“MPC”) has maintained interest rates at current 0.5% level since March 2009 and its Asset Purchase Programme (a.k.a. quantitative easing) at £200bn since November 2009, the consensus amongst the committee members is now beginning to break down, creating uncertainty regarding the future direction of monetary policy.  One member […]

Nine Zero-Cost Policies the UK Government can Implement to Encourage Economic Growth

September 16, 2010


Economists know that long-term economic growth is driven by fixed capital accumulation (ie. of manufacturing plant & equipment and communications & utility infrastructure) and increases in factor productivity (ie technological innovation which is a consequence of research and education). Economists also know that lower tax rates lead to higher levels of GDP growth. However, with […]

How High Government Debt Destroys GDP Growth

August 26, 2010


Cristina Checherita and Philipp Rother of the ECB have recently published an empirical study looking at the effect of high government debt on GDP growth, snappily entitled “The Impact of High and Growing Government Debt on Economic Growth: An Empirical Investigation for the Euro Area“, in which they find that: “This means that, on average […]