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

How might a wider Middle East conflict affect the global economy?

The world economy is underperforming as a result of tight monetary policies, weaker global trade, a slowing Chinese economy and uncertainty around the US election. An escalation of conflict in the Middle East could increase uncertainties, harming inflation reduction efforts and hurting growth.

Audio recordings

Attitudes, media & governance

What’s worth reading over the 2024 holiday season?

If you’re in search of Christmas gifts or a good book for yourself to read over the holidays, look no further than recommendations from the Economics Observatory.

DATA HUB

Consumer prices rise in November

Over the 12 months leading up to November 2024, the Consumer Prices Index, including owner-occupiers' housing costs (CPIH), increased by 3.5%.

The main upward drivers were housing and household services, restaurants and hotels, and recreation and culture.

Click on the chart to read Leigh Sparks on how the retail sector is faring this festive season.

Thursday 19th December 2024

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.

MAGAZINE

Read the latest edition of our magazine here

Digital microdata reveal nuance in the price of the holiday season’s most important meal, while historical records highlight how the cost of key ingredients has changed over decades.

Attitudes, media & governance

What are the economic impacts of institutions and technology?

Institutions that have been in place for centuries and cutting-edge new technologies both have big effects on society. Daron Acemoglu, co-recipient of the 2024 Nobel Prize in Economic Sciences, talks to Graeme Roy about how we can harness institutions and technologies for the common good.

Families & households

What’s changed through two decades of housing market dynamics?

Twenty-first century housing markets have had their ups and downs, but prices continue to rise. It’s win-win for the property-rich. Yet as corporate landlords and intermediaries open the door to institutional investors, it’s unclear where the route is to a fairer housing future.

Nations, regions & cities

Do cities and regions gain from public sector relocation?

Moving public agencies out of London was a major plank of the levelling-up agenda. The effects on local economies seem smaller than hoped – and it’s important to compare them with those of other tools of regional policy: key infrastructure, new institutions and encouraging private sector investment.

Aid & international development

Asylum seekers in Europe: where do people go and why?

As millions of people cross dangerous terrain to seek refuge in Europe, understanding the factors that drive them to go to particular places is crucial. It is also important to assess whether certain policies in destination countries deter or attract asylum seekers.

Business, big & small

How do corporate payout policies affect the impact of tax cuts?

President-elect Donald Trump has promised tax cuts in the United States. Research indicates that corporate payout policy (dividends and share buybacks) shapes firms’ financial decision-making and, in turn, the wider economy. But there are trade-offs as changes affect public spending and debt levels.

Business, big & small

How is the retail sector faring ahead of the 2024 holiday season?

Household finances have been stretched in recent years, with some families affected far more than others. In the lead-up to Christmas – a crucial time for many businesses – retailers will be looking to translate consumer interest into hard sales, particularly as the outlook for 2025 is so uncertain.

Jobs, work, pay & benefits

What are the links between job vacancies, unemployment and inflation?

Unemployment in the UK has been historically low since the start of 2022, despite rising interest rates and falling numbers of job vacancies. A key question for monetary and fiscal policy-makers is whether this trend will continue into the future.

Transport & infrastructure

Rebuilding social infrastructure: how should we invest in communities?

Investing in our public spaces is vital to address the big challenges of loneliness, mental ill health and social and political disengagement. Such investment also brings economic benefits – and can help to close the gaps between economically disadvantaged and more affluent parts of the country.

Families & households

What are the effects of youth club closures in the UK?

The widespread closing of youth clubs during the 2010s, driven by government austerity measures, led to falling educational performance and increasing rates of youth offending. The long-term financial implications – through reduced lifetime earnings and higher crime-related costs – are also stark.

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.

All Answers