Questions and answers about
the UK economy.

New PostBanks & financial markets

What can happen when economic policy-makers lose credibility?

Fears that central banks’ commitment to low inflation is weakening or that a government’s fiscal plans are uncosted, unchecked and unfunded can be highly damaging for households, businesses and the public authorities themselves. A lack of credibility is a disaster for policy-makers.

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Banks & financial markets

The Bank of England’s Monetary Policy Committee at 25: where next?

Twenty-five years since being granted operational independence, the Bank of England can look back at a successful track record. But with inflation once more resurgent, the Monetary Policy Committee faces the challenge of engineering a return to price stability without prompting a recession.

Banks & financial markets

What would the currency options be for an independent Scotland?

If Scotland were to become independent from the rest of the UK, it would need to decide what currency to use. Options include sticking with sterling, creating a new national currency or joining a monetary union, such as the eurozone.

Energy & climate change

How can climate promises be met while maintaining fiscal sustainability?

While the public finances in many countries are now under great pressure, this is no time to forget commitments to tackling climate change. Indeed, conditional on action being taken early, governments’ support for the transition to net zero could ultimately improve fiscal sustainability.

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Energy & climate change

Energy transition minerals: what are they and where will they come from?

To meet its net-zero targets, the UK needs a transition to cleaner energy and greener transport. This will require larger and more stable supplies of critical minerals. The government should also implement policies to improve mining practices, reduce demand, and increase reuse and recycling.

Schools, universities & training

How can education and skills contribute to levelling up?

Education and skills contribute to differences in earnings and opportunities across generations, both at the national level and between local authorities in England. Targeted policies can help to reduce the gaps between individuals and contribute to efforts to level up the UK economy.

Banks & financial markets

The birth of inflation targeting: why did the ERM crisis happen?

In September 1992, the UK was forced to withdraw from the exchange rate mechanism of the European Monetary System, as it was unable to keep the value of the pound above the limit specified by the agreement. There are lessons from three decades ago for today’s bout of high inflation.

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