How Adam Smith can help solve Europe’s youth unemployment problem January 13, 2015 Youth unemployment remains a serious problem in Europe. There is the tiniest glimmer of hope in that, in November, the number of young people under 25 unemployed in the Eurozone was 58,000 lower than it was a year before. But that still leaves 3.4m without a job. In Italy, the youth unemployment rate is 44 [...]
Forget howls of deflation anguish: UK inflation at 0.5 per cent is very welcome January 13, 2015 UK inflation is now more than one percentage point below the official target for the first time since the Monetary Policy Committee (MPC) was established in 1997. What does this tell us about the outlook for the British economy? If past precedent had been followed, we could have seen the views of the MPC on [...]
As the IFS warns on UK debt, is Labour right to allow for more wiggle room on spending cuts? January 13, 2015 Vicky Pryce is chief economic adviser at the Centre for Economics and Business Research and a former joint head of the Government Economic Service, says Yes The IFS has argued that Labour’s spending plans, if implemented, could lead to sharply higher levels of national debt. The alternative, of course, is tougher cuts. But because government [...]
Don’t believe Labour’s scare tactics: Free trade is good for British workers January 12, 2015 This week, our Prime Minister will meet with Barack Obama at the White House. Margaret Thatcher used to say fondly that she could “smell the freedom” in America. And doesn’t the country’s economy prove it? The US is still a jobs juggernaut: the largest standalone economy on Planet Earth. We owe it to our children [...]
Forget trickle-down: In a free market, the rich don’t gain at the poor’s expense January 12, 2015 A lie, repeated often, becomes the truth in the public mind. That’s why, when a Fox News commentator suggests that Birmingham is a “Muslim-only city”, we feel it important to set the record straight. Sadly, many lies and myths pervade public discussion of economics. No matter how often they are debunked, they return. Attempts to [...]
After new City salaries rose by 18 per cent in 2014, will 2015 be another good year for pay? January 12, 2015 Hakan Enver is operations director at Morgan McKinley, says Yes Salaries and bonuses have risen at a rate that we have not seen since before the start of the financial crisis, with average increases for middle and back office staff over the past year standing at 18 per cent. We predict that, over the next [...]
Angela Merkel and Syriza are about to open Pandora’s box: Watch out, Eurozone January 11, 2015 It is not often that I feel sorry for German Chancellor Angela Merkel. Having lived in her country since 2006, for me she is the most overrated of modern politicians, having accomplished almost nothing in terms of substantive policy achievements, while somehow being lionised for her lack of ambition. She is the archetype of this [...]
London must come together to address the challenge of population growth January 11, 2015 Canada Corporation has a uniquely diverse role. As lord mayor, my job is no exception, as the most cursory glance at my diary will tell you. One minute I’m in my wellies on Hampstead Heath, meeting our talented staff there, and the next I’m overseas promoting British business. But of all the [...]
Why it’s time boards faced up to the corporate culture challenge January 11, 2015 CULTURE in UK business came under the spotlight in 2014, as executive remuneration, market manipulation, supplier arrangements and so on drew comment and criticism. Where does the responsibility lie for ensuring ethical corporate behaviour, and who is accountable when culture is found to be at fault? The Financial Reporting Council’s (FRC) 2014 revision of the [...]
As bankers warn of crisis risks, is the Chinese economy a cause for concern? January 11, 2015 Clare Howarth is lead Asia Pacific economist at Oxford Economics, says Yes. Chinese producer prices have been falling for almost three years, as growth slows and industry struggles with excess capacity. Falling oil prices have pushed producer price inflation (PPI) down faster in recent months, but are also partly a consequence of the cooling economy. [...]