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

Budget talk

The budget has been this week’s big story in UK economics and economic policy-making. Economists from across the country have provided expert insights on its promises – and pointed out what barely got a mention, including Brexit, schools, health and emerging inequalities.

Inequality & poverty

Have government measures been protecting the UK’s most vulnerable?

Several government measures have sought to protect family incomes in this time of crisis. But there is mounting evidence that the support provided to people most vulnerable to the economic impacts of the pandemic has not been enough to prevent rising hardship.

Business, big & small

How might Brexit affect the English Premier League?

As Premier League clubs recover from the financial hit of Covid-19, they will again become active in the global labour market for footballers. But their player development and recruitment strategies are likely to change as a result of the UK leaving the European Union.

Recession & recovery

Could a national investment bank support recovery from the Covid-19 crisis?

The unprecedented challenges brought by coronavirus will require an investment-led recovery at a time when confidence in the economy is weak. The establishment of a national investment bank could foster a more positive climate for growth, promoting innovation, employment and improved productivity.

Jobs, work, pay & benefits

Update: How is the coronavirus crisis affecting gig economy workers?

Since the start of the crisis, opportunities for some gig economy workers have grown, especially in deliveries – but expansion has not been uniform. A recent court ruling that Uber drivers should not be classed as self-employed may further affect this part of the labour market.

Health, physical & mental

What do social media reveal about our emotions during the Covid-19 crisis?

Understanding the emotional state of the population is valuable for policy-makers when responding to a crisis. Data from social media provide high-frequency measures with which to track various aspects of people’s mental and physical wellbeing.

News

Perspective matters

Vaccinating the population, moving out of lockdown and then ‘building back better’ all require policy informed by different measures and methodologies. A balanced approach that incorporates a variety of perspectives is essential.

Crime & policing

Did the vote for Brexit lead to a rise in hate crime?

Some have seen the UK’s vote to leave the European Union as a ‘trigger’ event, perhaps giving would-be perpetrators of racial and religious hate crime the idea that many people share their extreme views and increasing the probability of criminal incidents.

Data stories

What do payroll employment data reveal about UK job losses?

The latest UK labour market data may not reflect the full impact of the pandemic, as the furlough scheme continues to protect jobs. A closer look at payroll employment reveals uneven effects, with young workers and certain localised areas particularly badly affected.

Prices & interest rates

Can central bank balance sheets handle the challenges of Covid-19?

By buying up private sector assets – and so extending their balance sheets – central banks can both support businesses directly and underpin financial markets in times of crisis. This ‘qualitative’ easing is likely to be needed to deal with the sharp Covid-19 downturn.

Prices & interest rates

How has Brexit affected the value of sterling?

Since the Brexit vote in 2016, the exchange rate of the pound against other leading currencies has fallen significantly. This seems to reflect a generally negative outlook among international investors for the UK’s economic prospects outside the European Union.

News

What comes next?

It seems unlikely that life will go back to normal after coronavirus. The forced experiment of working from home will change the nature of cities. And there may be renewed motivation to tackle pressing social concerns such as climate change in a green recovery.

Charities & volunteering

Is coronavirus distracting us from other pressing social concerns?

There are growing concerns about the impact of the pandemic on other social objectives, such as tackling climate change and reducing inequality. While some past crises have boosted total charitable giving, Covid-19 may lead to donations being diverted from other causes.

Science, technology & innovation

What does 95% effective mean for a Covid-19 vaccine?

Pfizer/BioNTech’s vaccine was reported as being 95% effective. This number is not your chance of staying Covid-free after vaccination: rather, it estimates how much your chance rises relative to not being vaccinated. With the vaccine, your chance of staying Covid-free is in fact 99.96%.

Banks & financial markets

How can green finance foster a sustainable recovery after Covid-19?

Many people believe that recovery from the pandemic should be focused on long-term environmental sustainability as much as economic and social concerns. Green finance can contribute by promoting sustainable sectors and by diverting funds away from heavy polluters.

All Answers