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

Why are supermarket shelves in Northern Ireland empty?

The pandemic continues to cause disruption to global food supplies. But the reason for empty supermarket shelves in Northern Ireland is the interaction between the end of the Brexit transition period and the region’s high level of market integration with the rest of the UK.

In conversation with Wendy Carlin

Michael McMahon, Professor of Economics at Oxford University, interviews Professor Wendy Carlin, Professor of Economics at UCL, on macroeconomics, teaching, and widening diversity in the field.

Schools, universities & training

How can policy-makers and parents support home learning during lockdown?

With schools again closed, disadvantaged children need laptops and internet connections to access remote education. Parents can support home learning by making their children’s wellbeing the priority and focusing on the quality of learning experiences, not the quantity.

News

The end of the beginning?

While the number of UK Covid-19 cases remains worryingly high, particularly in the light of reports that the NHS could be weeks from becoming overwhelmed, by some measures there have been improvements. But while the vaccine may quell the pandemic, its economic effects will remain for years to come. Is this the end of the beginning?

Business, big & small

Have government policies helped small firms cope with coronavirus?

Small firms around the world have been hit hard by the Covid-19 crisis. While governments have mobilised substantial resources in support, many measures have had limited effect, in part due to smaller enterprises struggling to access information on relief loans.

Lessons from history

How do large-scale pandemics affect inequality?

Research on past pandemics suggests that they can have significant effects on inequality and poverty. But while the Black Death triggered a systematic decline in wealth inequality in medieval Europe, the Spanish flu of 1918-19 led to rises in both poverty and income inequality.

Public spending, taxes & debt

Should a UK wealth tax be devolved?

The Covid-19 crisis has renewed interest in the merits of introducing a tax on net wealth in the UK. A key issue to consider is whether such a tax should be operated uniformly across the country or with some elements devolved to the governments in Edinburgh, Cardiff and Belfast.

Jobs, work, pay & benefits

Data: Pretty vacant – a small revival in job openings

UK vacancies collapsed during the Covid-19 crisis. Recent data suggest that they may be back on the rise, if only to levels seen in the 2008-11 recession. But while this trend is welcome, it is unusual that vacancies are now rising alongside growing unemployment.

Prices & interest rates

Do we need a new constitution for central banking?

The global financial crisis, persistently weak growth and now Covid-19 have created tensions between politics and central banking. The time is ripe for a refreshed constitution, making clear the purpose of independent central banks, and what should fall to fiscal authorities.

Covid-19: Economics meets epidemiology

News

High costs of indecision

If there is one lesson that policy-makers should have learned since the pandemic began, it is that indecision is costly. This has proved true repeatedly for public health and is just as relevant for education. Lives have been lost; and young people’s futures damaged.

Science, technology & innovation

How is Covid-19 affecting firms’ adoption of new technologies?

Fears that the impact of the pandemic on technology adoption will exacerbate the UK’s problem of persistently weak productivity growth are not necessarily justified. Recent evidence gives cause for cautious optimism, as many firms try to ‘innovate their way out of the crisis’.

Banks & financial markets

Are Bitcoin and other digital currencies the future of money?

The rising price of Bitcoin during the pandemic has renewed interest in private digital money. While it is unlikely that Bitcoin will replace existing currencies, the emergence of ‘cryptocurrencies’ and ‘stablecoins’ has prompted exploration of central bank digital currencies.

Prices & interest rates

Data: The changing cost of Christmas dinner

New data make it possible to track Christmas prices – from presents in stockings to coal for the fire. In terms of hours of work needed to afford these items, costs look surprisingly stable over time. Yet there are big differences depending on what you buy and where you live.

Covid-19: Paying for the pandemic

All Answers