Ed Dolan's Econ Blog

Roubini Topic Archive: United Kingdom

  • Did Austerity Work in Britain? One Chart Tells It All

    The general election campaign is in full swing in Britain, and it seems it’s all about austerity. From London, The New York Times reports that the campaign revolves around a single issue: the economy, and whether its rebound is the result of an austerity policy championed by the Conservative-led government of David Cameron, or in […]

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  • What Ever Happened to the Misery Index?

    Remember the 1960s? The 1970s? Back then, inflation surged from one peak to another but failed to deliver the low unemployment rates promised by the Phillips curve. In fit of frustration, economist Arthur Okun invented what he called the misery index—the sum of the inflation and unemployment rates. As the following chart shows, those were […]

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  • Summers, Osborne, and Zakaria on British vs. US Austerity: Fact Check in One Chart

    Yesterday Fareed Zakaria  presented an interview with British Chancellor of the ExchequerGeorge Osborne on his CNN talk show GPS. (CNN did not post the video, but you can read the transcript here.) In the course of the interview, Zakaria brought up Larry Summers’ recent criticism of Britain’s austerity policy. The resulting exchange immediately set off […]

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  • How Much Is Enough? Why Do We Work So Much and Enjoy So Little Leisure?

    Robert Skidelsky is best known for his definitive three-volume biography of John Maynard Keynes. It hardly surprising, then, that he begins his latest book, How Much is Enough? (co-authored with his son, the philosopher Edward Skidelsky), with a puzzle posed by the master himself. Why is it that we work so many hours each week […]

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  • Are Banks Safe Enough? Do we Really Know? Risk Weighting, Regulatory Arbitrage, and other Issues

    During the global financial crisis, people in the United States, Ireland, Iceland, and many other countries learned that undercapitalized banks can spell trouble for the whole economy. The Basel II rules that were supposed to prevent widespread bank failures proved inadequate. In response to the crisis, the world’s central bankers and bank regulators started work […]

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  • How Gordon Brown Saved Britain from the Euro and Why that Makes him a Hero

    In his new book, Alistair Darling describes Gordon Brown’s political style as “appalling,” “volcanic,” and “brutal.” He should know. The two men sat together in the cabinet for years while Brown was chancellor. Darling then served as chancellor himself when Brown finally became prime minister. Now that Brown is out of office, it seems he […]

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  • Will Central Banks Accommodate the Oil Price Shock?

    Inflation rates are rising in the world’s major economies. The consumer price index rose by half a percent in the United States in February, equivalent to an annual rate of 6.2 percent. Consumer prices rose at a 4.4 percent annual rate in the UK and a 2.4 percent rate in the euro area. All three central banks have explicit or implicit inflation targets of 2 percent or less.

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