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

New Post • Attitudes, media & governance

How important is economics in the debate on Scottish independence?

Voters’ perceptions of the economic outcomes of independence played an important role in the result of Scotland’s referendum in 2014. Following Brexit, the debate is no longer just about Scotland’s relationship with the rest of the UK, but also the European Union.

Talking Economics

Our first annual conference took place in Bristol on 17-19 November 2021. Click here to see the full programme and listen back to the talks.

Banks & financial markets

What new institutions of economic policy would an independent Scotland need?

Building trust in a post-independence Scottish government’s commitments to sound economic policy and sustainable public finances would require strong, operationally independent institutions – including a debt management office, a strengthened fiscal watchdog and a new monetary authority.

Nations, regions & cities

Scottish independence: what are the big economic questions?

Scotland may soon have a second referendum on whether to remain part of the UK. Economic issues will be a key part of the debate – from the fiscal policy institutions needed for an independent country to choice of currency and the future relationship with the European Union.

Prices & interest rates

What is supply chain inflation and why is it driving up consumer prices now?

The interconnectedness of global supply chains means that when one price goes up, others tend to follow. Increases in labour, energy and transport costs are contributing to inflation around the world, posing difficult policy challenges.

Jobs, work, pay & benefits

What is happening with UK wages?

While headline figures for wages have recently suggested rapid growth, average settlements are 2-3% – and pay is certainly not going up as fast as consumer prices. Real wages are only likely to rise if either productivity growth accelerates or workers have greater bargaining power.

Data stories

What do the latest data tell us about the UK labour market?

The UK labour market seems to have bounced back to pre-pandemic levels. But new data reveal that part-time work has dropped significantly, while the number of claimants of unemployment benefits remains higher than two years ago. There are also different rates of recovery across regions.

Data Hub

Live and interactive charts and visualisations, making sense of the latest numbers

Jobs, work, pay & benefits

What might be the effects of a four-day working week?

A shortened working week has been proposed to improve work-life balance, raise productivity and support recovery from the pandemic. Current trials can shed light on whether a four-day week may impose costs on employers and exacerbate labour market shortages.

Health, physical & mental

How is the healthcare sector dealing with climate change?

Healthcare systems face a growing burden from environmental hazards like air pollution and extreme weather events. As major contributors to greenhouse gas emissions, they are also seeking to reduce their carbon footprint.

Recession & recovery

Will inflation take off in the UK?

Inflation is likely to rise from its current low level due to supply shortages and increased spending. The most probable outcome is a range of 2-3% a year, but it could go higher. Any increase above 3% should be temporary as long as fiscal and monetary policy are set appropriately.

Prices & interest rates

Does Covid-19 change the value of vaccines?

The development of several effective vaccines altered the course of the pandemic in the UK. But how do economists and policy-makers value the benefits of medical treatments, and could this process be improved?

News

Money: back to the future

The continuing process of digitalisation of the world’s financial system as well as the move away from cash during the pandemic are raising existential questions about the future of money.

Banks & financial markets

Why has the price of Bitcoin risen/fallen in the past day/week/month?

The price of the cryptocurrency Bitcoin is determined by some combination of a small number of very large trades, the issuance of Tether, a so-called stablecoin, and organic supply and demand. Finding out what caused a particular price movement requires examination of all three factors.

Banks & financial markets

Dogecoin: what is it and does it have any value?

From Bitcoin to Ethereum and Litecoin to Tether, there are now over 4,000 cryptocurrencies in circulation. Dogecoin, a so-called meme cryptocurrency, began as a joke but it is now mined at a rate of 10,000 new coins every minute.

All Answers