Economics Observatory | Questions and answers about coronavirus and the UK economy

Which taxes are best and worst for growth?

Tax affects economic growth by reducing consumer spending and lowering incentives to invest. But different fiscal policies have variable overall economic effects, with taxes on income better than those levied on corporate profits in terms of their wider impact on GDP.

Nations, regions & cities

How would dollarisation affect Argentina’s competitiveness?

Replacing Argentina’s currency with the US dollar was a central policy promise of the country’s new president, Javier Milei. The primary intention was to tame rampant inflation, but the impact on the country’s competitiveness could be significant.

Prices & interest rates

Can artificial intelligence help us to measure inflation?

In new work, the Economics Observatory data team demonstrates how AI tools can be used to collect, clean and summarise price data. The automated food CPI generated is available faster, with broader coverage and at lower cost than human-collected data. It could be a complement to official statistics.

Nations, regions & cities

What next for Poland’s economy?

Poland’s new government is prioritising competent policy-making, the rule of law and investment in skills and education. There is real promise that new policies will be based on solid research evidence, including the appointment of senior ministers with deep ties to the academic community.

Public spending, taxes & debt

Can investment tax reform boost economic growth?

Taxing capital affects investment and economic growth, with both tax bases and tax rates playing an important role. In the UK, growth-enhancing tax policies should target innovation and investment rather than savings. There may also be room for fiscal reforms that do not reduce revenue.

MAGAZINE

Read the latest edition of our magazine here

Along with the rest of the UK, Wales’s population is ageing and there is a real chance of population decline, posing significant risks to economic wellbeing. Policy-makers can learn from international evidence on boosting fertility, retaining population and attracting inward migrants.

News

Changing of the guard

Sluggish economic growth is one of the biggest policy challenges facing governments around the world. The context and solutions deployed may look very different, but tackling this must be a universal policy priority.

Nations, regions & cities

Update: what big policy challenges face Scotland’s next first minister?

Humza Yousaf, Scotland’s first minister has recently stepped down. His successor, John Swinney, faces a number of economic challenges related to growth, an ageing population, regional inequality and the transition to net zero.

Trade & supply chains

How is India's trade landscape shaping up for the future?

After independence in the late 1940s up to the early 1990s, India’s trade policy was transformed: from protectionism to a liberalised economy. As the country moves towards greater global economic integration, remaining challenges include improving infrastructure and diversifying trade relations.

Nations, regions & cities

Argentina under a new government: what are the big economic challenges?

With a new administration, Argentina stands at a potential turning point. By implementing aggressive fiscal and monetary reforms, President Milei’s government aims to stabilise the economy and reduce inflation. The likely success of these measures in sparking economic recovery is an open question.

Nations, regions & cities

How are the UK’s devolved nations faring ahead of the general election?

Over the current parliamentary term, Wales, Scotland and Northern Ireland have each faced unique challenges as well as common ones, such as rising economic inactivity. Measures of output, productivity and the labour market indicate where the devolved nations could improve their economic prospects.

Prices & interest rates

Update: how is the war in Ukraine affecting global food prices?

The protracted conflict in Ukraine cannot keep food prices rising perpetually. Costs have started receding in the global market, as well as in several advanced economies. But food inflation persists in many developing countries, largely due to domestic challenges that go beyond the Russian invasion.

Productivity & growth

How can the UK revive its ailing productivity?

The UK’s poor productivity limits wage growth and better living standards. But the problem has no quick fixes. To boost productivity, policy-makers must establish and stick to a long-term strategy that includes diverse sectors – from technology and innovation to education, housing and transport.

All Answers