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

#studentviews: How can UK policy-makers stop young people from vaping?

The UK proposes to introduce an excise duty on e-cigarettes, with the primary goal being to reduce their consumption. The policy’s effectiveness will depend on whether the price increase is enough to deter people from buying these products – and whether an overall smoking ban is implemented.

Pensions, savings & investment

Should the state pension age go up in countries with ageing populations?

In the developing world, falling fertility and rising life expectancy are leading to ageing populations. This has big implications for public spending, including on pensions. In response, many countries are raising the state pension age and/or debating whether it should go up further.

Public spending, taxes & debt

What are fiscal rules and how have they worked in the UK?

Since the 1990s, UK governments have set constraints on how much they can borrow to fund public spending net of tax revenues, as well as total public debt relative to GDP. These targets are required by legislation but have been frequently adjusted in response to changing circumstances or priorities.

Prices & interest rates

Why have insurance premiums gone up so much?

Higher insurance premiums for cars and homes are being driven by a mix of factors, including changing regulations, changing human behaviour and a changing climate. Insurers have to balance the need for adequate reserves for claims, maintained profitability and affordable coverage for consumers.

News

Looking forward, looking back

This is a bumper year for elections, with over 60 countries and around half the world’s population going to the polls. Economic researchers can play an important role in providing independent analysis and robust evidence to inform the decisions that voters make about their future political leaders.

MAGAZINE

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With high property prices, rising rents and sluggish rates of new-build, the UK is facing a crisis of housing affordability. A comprehensive strategy is urgently needed, one that’s joined up with other key areas of public policy, including taxation and investment in human capital.

Public spending, taxes & debt

What would be the effects of abolishing or reforming inheritance tax?

Inheritance taxes aim to raise revenue and reduce inequality of opportunity arising from differences in parental wealth. But current UK policy has little impact on social mobility. Scrapping the tax would benefit the wealthiest, while reforms could reduce unfairness and negative economic effects.

Productivity & growth

What explains the UK’s productivity problem?

The UK has experienced significantly slower productivity growth than comparable countries over the decade and a half since the global financial crisis. Three fundamental challenges need to be tackled urgently: underinvestment, inadequate diffusion and an absence of joined-up policy-making.

Attitudes, media & governance

What is the impact of international economic law on developing countries?

Just as at the time of Bretton Woods, international economic law is essential to discourage destructive national policies. But it is also vital to understand how law, regulations and institutions are located within a longer historical trajectory of colonialism, inequality and exploitation.

Lessons from history

The Good Friday Agreement at 25: has there been a peace dividend?

The Good Friday Agreement ended a three decades-long conflict in Northern Ireland. Peace has brought some economic improvements, including lower unemployment, higher wages for low earners and the arrival of new industries. But progress in other areas – particularly productivity – has been limited.

Pensions, savings & investment

Is gold a safe haven for investors?

The price of gold has risen in recent years, highlighting the role of this precious metal as a stable investment. While the value of gold is resilient and protected from inflation, its stability is not guaranteed in times of crisis.

Attitudes, media & governance

Twenty years of Facebook: how has it shaped economies around the world?

Much has changed since the early days of Facebook in Mark Zuckerberg’s room at Harvard University two decades ago. Today, working out how best to regulate the company is a vital issue for policy-makers around the world. Protecting consumers without dampening innovation is critical.

Data stories