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

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.

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.

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.

Data Hub

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

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.

Banks & financial markets

Should central banks develop their own digital currencies?

Central bank digital currencies (CBDCs) could improve payment systems, promote financial inclusion, protect against financial fraud and accelerate the transition to a cashless society. But there are potential downsides in terms of consumer privacy and threats to cyber-security.

Banks & financial markets

Will coronavirus accelerate the move towards a cashless economy?

The use of cash fell substantially in the early days of the Covid-19 pandemic with the acceleration in online shopping and contactless payments – but cash usage has bounced back as lockdown has eased. Long-term prospects for retail payments remain uncertain.

Lessons from history

What are the lessons from history for digital currency?

Experiences from the past suggest that digital currencies – such as Bitcoin, Tether and Dogecoin – will eventually be regulated or monopolised by central banks.

Attitudes, media & governance

What have economists been writing about in 2021?

From the pandemic and its economic consequences to climate change, economists have been writing about how we can understand and tackle both current challenges and those we are likely to face in the future.

Charities & volunteering

How has Covid-19 affected charitable giving?

Despite an initial increase in donations at the outset of the pandemic, the number of people giving to charities fell in early 2021 compared with previous years. Long-term trends are also worrying for the sector, which will be hoping that December brings its traditional festive boost.

Business, big & small

How is the latest wave of Covid-19 affecting retailers this Christmas?

Hopes of a return to some kind of normality for the UK’s retail sector this holiday season have been set back by the Omicron variant. Shops also face big challenges in the form of online competition, supply chain problems and staff shortages.

All Answers