Category archives for British growth crisis

Mortgage debt and wages: A comparison of Britain and Denmark

James Wood

Different approaches to mortgage debt may impact wages, how homeowners engage with employers and welfare services, and economic growth One of the primary motivations for homeownership in advanced economies is securing the home as a financial asset. Whilst this is widely recognised, the impact of mortgage debt on aggregate wages is not. This post looks at how taking on mortgage … Continue reading

14 June 2016 by
Categories: British growth crisis, Debt, Economics, SPERI Comment | Tags: , , , | Leave a comment

The Coming Crisis: systemic stabilization and the investment state

A new ‘investment state’ is needed to provide stability in the new uncertain political economy of shadow money, financial instability and demand deficiency We live in an era characterised by a confusing evolutionary dynamic relationship between financial innovation, the state and patterns of investment that we barely understand. At the core of this conundrum is the little understood issue of … Continue reading

18 May 2016 by
Categories: British growth crisis, Finance, Politics and policy, SPERI Comment, Sustainability, The coming crisis | Tags: , , , , , , , , , , | Leave a comment

The Coming Crisis: secular stagnation for the UK?

Jonathan Perraton

Current economic trends suggest the UK may need to be prepared for a period of weak, and potentially zero economic growth It is now almost eight years since the collapse of Lehman Brothers heralded the global financial crisis (GFC), roughly the length of a normal business cycle. Over that time interest rates have been held at record low levels and … Continue reading

11 May 2016 by
Categories: Austerity, British growth crisis, Economics, Finance, Politics and policy, SPERI Comment, The coming crisis, USA | Tags: , , | Leave a comment

What is money for?

To meet collective societal challenges, and to respond to future recessions, a different way of thinking about money is required One particular exchange from the inaugural SPERI conference in 2012 has always stuck in my mind. After Colin Hay’s opening address, Bob Jessop asked him, ‘what is your theory of money?’ At the time I thought this was distractingly abstract, … Continue reading

5 April 2016 by
Categories: British growth crisis, Economics, Finance, Politics and policy, SPERI Comment | Tags: , , , , , , , , , , | Leave a comment

How sustainable are the Anglo-American recoveries?

Jeremy Green

While both countries have experienced comparatively strong growth, divergence on the current account ensures that the UK’s situation looks much more perilous Staggering global payments imbalances are a defining feature of contemporary capitalism. From the 1980s, with the emergence of the ‘neoliberal’ phase of capitalism, two major categories of growth model have emerged: debt-led growth models, marked by current-account deficits, … Continue reading

2 February 2016 by
Categories: British growth crisis, Economics, Global crisis, Politics and policy, SPERI Comment, Sustainability, USA | Tags: , , , , , , , , , , , , | Leave a comment

Corbynomics: Part 2

Jonathan Perraton

The right questions are now being asked, but much fleshing out of the proposed partnership between an enabling state and a dynamic private sector is still needed The election of Jeremy Corbyn as Labour Party leader has changed the terms of debate over UK economic policy. Corbyn and his shadow chancellor John McDonnell have already outlined a new approach to … Continue reading

18 November 2015 by
Categories: British growth crisis, Economics, Politics and policy, SPERI Comment, Tax | Tags: , , , , | Leave a comment

The potential of workers’ capital in Britain’s economic renewal

Craig Berry

Recent governments have not focused sufficiently on addressing the chronic short-termism of pension fund investments The 2008 financial crisis and subsequent stagnation in the British economy gave renewed prominence to one of its longstanding handicaps. The relative lack of long-term investment can be associated with both the housing market and asset price booms which created significant volatility in the pre-crisis … Continue reading

6 November 2015 by
Categories: British growth crisis, Economics, Politics and policy, Social science, SPERI Comment, Welfare | Tags: , , , , , , , , , | Leave a comment

Innovation, research and the UK’s productivity crisis

Richard Jones

Continuing on our current path of stagnating productivity and stagnating innovation isn’t inevitable: it’s a political choice The UK is in the midst of an unprecedented peacetime slowdown in productivity growth.  Labour productivity – the economic output produced per hour worked – has, for many decades, grown steadily at 2.3% a year.  All that changed in 2007, since when it … Continue reading

23 September 2015 by
Categories: British growth crisis, Development, Economics, Environment, Finance, Global crisis, SPERI Comment | Tags: , , , , | Leave a comment

Political party conferences: A look ahead

As the party conferences get underway this weekend three experienced analysts share their thoughts on what we might expect to hear at the Lib Dem, Labour and Conservative conferences, and the challenges facing each party. Michael Kenny on the Liberal Democrats: The biggest challenge facing the Lib Dems’ newly elected leader, Tim Farron, when he rises to speak at the … Continue reading

17 September 2015 by
Categories: British growth crisis, Politics and policy, SPERI Comment | Tags: , , , , , , | 2 comments

Paul Romer on mathiness and orthodox economics methodology

Matthew Watson

Recent criticisms of the mathiness of many economists has raised the question within the blogosphere of whether a fundamental fault-line has now punctured economics orthodoxy Over the course of the summer Paul Romer has set the economics blogs alight with his accusation regarding the so-called mathiness of many of his peers.  We can be pretty sure that this is not … Continue reading

16 September 2015 by
Categories: British growth crisis, Economics, Methodology, Political theory, Social science, SPERI Comment | Tags: , , | Leave a comment

The political economy of ‘good parenting’

‘Good parenting’ is grounded in a white middle-class ideal of what the family is and thus shifts responsibility for nurturing from society to individuals, mostly women Family breakdown and poor parenting have hit the headlines in Britain in recent years as the proclaimed reasons for a large range of societal problems, from youth rioting to youth unemployment to teenage pregnancy.  … Continue reading

8 September 2015 by
Categories: British growth crisis, Inequality, Politics and policy, Rethinking Recovery, Social science, SPERI Comment, Welfare | Tags: , , , , , , , | Leave a comment

The political difficulties of ‘Corbynomics’

The problems are not really the economics at all, but much more the politics A month ago nobody had heard of ‘Corbynomics’.  Today Google records 174,000 search results.  It is becoming difficult to escape the term in any form of media.  If Jeremy Corbyn wins the Labour leadership election, its contents and claims will shape political debate in the UK … Continue reading

3 September 2015 by
Categories: British growth crisis, Debt, Economics, Employment, Political theory, SPERI Comment | Tags: , , , , , , , , , , , | 1 comment

Austerity rests on a thesis the government doesn’t believe in

Tom Hunt and Craig Berry

Concentration of infrastructure investment in areas with high levels of business activity suggests the government is unconcerned by ‘crowding out’ Remember expansionary fiscal contraction? You don’t hear much about it now, but back in 2010 when George Osborne set out his austerity agenda, the theory underpinning it was that the private sector would expand to fill the gaps caused by … Continue reading

1 September 2015 by
Categories: Austerity, British growth crisis, Craig Berry, Development, Economics, Inequality, SPERI Comment | Tags: , , , , , , | Leave a comment

Citizenship in a financialised society

Craig Berry

The Conservative government’s promotion of financialisation is transforming citizenship in the UK While the New Labour-ish language of ‘financial inclusion’ and ‘asset-based welfare’ has been quietly eschewed, since 2010 the Conservative Party has continued its predecessor’s agenda around promoting more extensive and intensive participation in the financial system, through asset ownership, in order to enable individuals to play an enhanced … Continue reading

28 August 2015 by
Categories: British growth crisis, Economics, Finance, Housing, SPERI Comment | Tags: , , , , , , , , , | Leave a comment

Child poverty and the unravelling of New Labour’s ‘hybrid’ political economy

Scott Lavery

Cameron claims to lead a ‘One Nation’ government, but pursues a ‘two nations’ governing strategy One of the headline social policy goals of the Blair and Brown governments was to eradicate child poverty in Britain by 2020.  During New Labour’s thirteen years in power considerable progress was made in this regard: child poverty fell from 3.4 million in 1998 to … Continue reading

12 August 2015 by
Categories: British growth crisis, Debt, Politics and policy, SPERI Comment, Tax, Welfare | Tags: , , , , , , , , , | Leave a comment

Deficit fetishism and the art of political bullshit: Part II

Jonathan Hopkin and Ben Rosamond

Faced with radical uncertainty, rationally ignorant actors are more likely to fall back on conventional, emotionally satisfying beliefs than complex theories advanced by professional economists In a previous post we argued that the current obsession with the UK’s budgetary position, far from being the result of a rational debate about Britain’s economic problems, is best seen as an example of … Continue reading

22 July 2015 by
Categories: British growth crisis, Social science, SPERI Comment | Tags: , , , , , | 3 comments

Deficit fetishism and the art of political bullshit: Part I

Jonathan Hopkin and Ben Rosamond

Attempts to refute bullshit by appeals to the ‘facts’ are likely to be unsuccessful as argumentative strategies Debates about economic policy in the recent UK General Election campaign were dominated by one particular claim: that the last Labour government, which left office in 2010, was wholly responsible for the deficit.  This claim became a central plank of the Conservative Party’s … Continue reading

15 July 2015 by
Categories: Austerity, British growth crisis, Politics and policy, Rethinking Recovery, Social science, SPERI Comment | Tags: , , , , , | 1 comment

‘Osbornomics’ and the death of benign government

Matthew Watson

Osborne’s plan to bind all future Chancellors to produce annual budget surpluses is not driven by economic logic, but is intended to reshape the meaning of government There is something really rather smug about the British Chancellor of the Exchequer, George Osborne, intending to legislate formally for constant year-on-year budget surpluses.  ‘I have been so right all along in my … Continue reading

7 July 2015 by
Categories: Austerity, British growth crisis, Economics, Politics and policy, SPERI Comment, Tax | Tags: , , , , , | Leave a comment

Rethinking Recovery V

Alex Nunn

Intergenerational and gender-based inequality: before and after the crisis The new Conservative government is persisting with billions of pounds of cuts despite rising evidence of poverty and inequality, particularly for young people, children and women. These cuts will only serve to reinforce generational and gender-based inequality. Just over a week ago on 20 June tens of thousands of people marched in … Continue reading

1 July 2015 by
Categories: Austerity, British growth crisis, Inequality, Rethinking Recovery, Social science, SPERI Comment, Welfare | Tags: , , , , | Leave a comment

Rethinking Recovery IV

Britain’s recovery industry: profiting from austerity? This post investigates the burgeoning ‘recovery industry’ in Britain.  As the government cuts welfare and pushes people into precarious labour markets in the name of austerity, it is simultaneously opening up new spheres of profitability for firms.  This is stabilising the status quo of profits over people who are being pushed to produce a … Continue reading

24 June 2015 by
Categories: Austerity, British growth crisis, Rethinking Recovery, SPERI Comment, Welfare | Tags: | Leave a comment

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