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

How would dollarisation affect Argentina’s competitiveness?

Replacing Argentina’s currency with the US dollar was a central policy promise of the country’s new president, Javier Milei. The primary intention was to tame rampant inflation, but the impact on the country’s competitiveness could be significant.

Prices & interest rates

Can artificial intelligence help us to measure inflation?

In new work, the Economics Observatory data team demonstrates how AI tools can be used to collect, clean and summarise price data. The automated food CPI generated is available faster, with broader coverage and at lower cost than human-collected data. It could be a complement to official statistics.

Nations, regions & cities

What next for Poland’s economy?

Poland’s new government is prioritising competent policy-making, the rule of law and investment in skills and education. There is real promise that new policies will be based on solid research evidence, including the appointment of senior ministers with deep ties to the academic community.

Public spending, taxes & debt

Can investment tax reform boost economic growth?

Taxing capital affects investment and economic growth, with both tax bases and tax rates playing an important role. In the UK, growth-enhancing tax policies should target innovation and investment rather than savings. There may also be room for fiscal reforms that do not reduce revenue.

Nations, regions & cities

Population ageing and decline: what policies might mitigate the downsides?

Along with the rest of the UK, Wales’s population is ageing and there is a real chance of population decline, posing significant risks to economic wellbeing. Policy-makers can learn from international evidence on boosting fertility, retaining population and attracting inward migrants.

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Sluggish economic growth is one of the biggest policy challenges facing governments around the world. The context and solutions deployed may look very different, but tackling this must be a universal policy priority.

Nations, regions & cities

Update: what big policy challenges face Scotland’s next first minister?

Humza Yousaf, Scotland’s first minister has recently stepped down. His successor, John Swinney, faces a number of economic challenges related to growth, an ageing population, regional inequality and the transition to net zero.

Nations, regions & cities

The BRICS countries: where next and what impact on the global economy?

Brazil, Russia, India, China and South Africa, originally an informal group of the leading emerging economies of the early 2000s, have since experienced very different growth paths. Their significance in the global economy at a time of considerable geopolitical uncertainty remains an open question.

Nations, regions & cities

Argentina under a new government: what are the big economic challenges?

With a new administration, Argentina stands at a potential turning point. By implementing aggressive fiscal and monetary reforms, President Milei’s government aims to stabilise the economy and reduce inflation. The likely success of these measures in sparking economic recovery is an open question.

Nations, regions & cities

How are the UK’s devolved nations faring ahead of the general election?

Over the current parliamentary term, Wales, Scotland and Northern Ireland have each faced unique challenges as well as common ones, such as rising economic inactivity. Measures of output, productivity and the labour market indicate where the devolved nations could improve their economic prospects.

Prices & interest rates

Update: how is the war in Ukraine affecting global food prices?

The protracted conflict in Ukraine cannot keep food prices rising perpetually. Costs have started receding in the global market, as well as in several advanced economies. But food inflation persists in many developing countries, largely due to domestic challenges that go beyond the Russian invasion.

Nations, regions & cities

The phoenix that never rises: what’s holding back Pakistan’s economy?

Pakistan’s recent election has further eroded trust between citizens and the state. The economy continues to fall behind its Asian neighbours, with low rates of productivity growth and an unsustainably high burden of external debt. There are no signs these challenges will be addressed any time soon.

Lessons from history

Financing UK rail infrastructure: how does today compare with the past?

In Victorian Britain, hundreds of companies and countless private investors supported railway construction; today, such infrastructure is only financed by the government. Comparing delivery of HS2 and the Great Western Railway suggests that the historical funding model was rather more effective.

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