Gavyn Davies’s article is an interesting attempt to explain why the UK recovery remains so weak. This analysis is also very timely given the recent prognosis by the governor of the Bank of England of sluggish growth and high inflation. One aspect that Gavyn Davies has...

A sectoral analysis of the UK economy provides more granular evidence that Ben Broadbent’s assumption of labour hoarding and lower productivity growth currently impacting the UK economy is the most plausible explanation of the breakdown between rising employment and...

See link to John Cochrane's excellent response to Gordon's recent paper. http://johnhcochrane.blogspot.co.uk/2012/08/gordon-on-growth.html In particular: 'My impression of modern growth theory is that the economics of innovation production and adoption are not well...

Excellent paper from Bill White on evaluating the desirability of ultra easy monetary policy by weighing up the balance of the desirable short run effects and the undesirable longer run effects – the unintended consequences....

Although the returns on equities in the long run have been superior to those on bonds, equity returns remain extremely volatile due to the nature of the business cycle. Long-only investors attempting to minimise this volatility using indicators emanating from the...

Credit has too often been ignored by economists, mainly it seems because it is too complex to model. One of the main reasons why the new neo-classical synthesis – which forms the backbone of monetary policy today – failed to provide any indication of the financial crisis was because credit was largely omitted from its models.