Sustainability Scientists’ Critique of Neoclassical Economics Mark Diesendorf, Geoff Davies, Thomas Wiedmann, Joachim H. Spangenberg, and Steven Hail Citation: Diesendorf M, Davies G, Wiedmann T,…
Macroeconomics
Sustainability scientists challenge the dominant economic system Mark Diesendorf It is a rare event whenever scientists directly challenge the theory, political power and cultural embeddedness…
Francesca Diluiso and Aydan Dogan To achieve the emissions reduction targets outlined in The Paris Agreement, many economies have started implementing various types of climate policies. These policies, which include subsidies for green production or investment, carbon taxes, and cap and trade schemes, are crucial for guiding the transition to a greener economy. However, by … Continue reading International spillovers from climate policy
Neha Bora, Sarah Burkinshaw, Alice Crundwell and Tuli Saha Private equity (PE) has rapidly become an important source of financing for UK businesses. Funds use pools of capital, largely from institutional investors, to primarily invest in non-publicly traded companies. We shed light on this growing sector with a new and novel data set of around … Continue reading Shining a light on private equity backed corporates in four findings
An interconnected economic reality Part 2 Dynamic change and complexity in economics and modelling Dennis Venter This article is a continuation of part 1, by…
Krishan Shah, Phil Bunn and Marko Melolinna An important way in which monetary policy impacts the economy is through its effects on the capital expenditure of firms. When policy rates are raised (and as long as risk-premia remain unchanged) firms’ cost of capital increases. A higher cost of capital should lead firms to increase their … Continue reading High hurdles: evidence on corporate investment hurdle rates in the UK
Tomas Key Nominal wage growth has increased markedly in the UK in recent years, reaching levels that haven’t been seen for more than 20 years. Although growth has moderated a little in recent months, it remains significantly above its pre-pandemic level. An assessment of whether this strong rate of wage growth will persist is a … Continue reading Using sectoral data to estimate the trend in aggregate wage growth
The future is not evenly distributed Greg Reid It has been assumed by most western economists that as China develops, its rate of growth will…
Marco Garofalo, Giovanni Rosso and Roger Vicquery Most international trade is denominated in dominant currencies such as the US dollar. What explains the adoption of dominant currency pricing and what are its macroeconomic implications? In a recent paper, we explore a rare instance of transition in aggregate export invoicing patterns. In the aftermath of the … Continue reading Selling England (no longer) by the pound: currency-mismatches and the dollarisation of UK exports
MMT sees America through rapid economic recovery Stephanie Kelton and Steven Hail Modern monetary theory has been influential in helping America rise out of the…