Economists generally agree on few economic theories, but the negative impact of tariffs is one of them. The theory advocating for free trade without tariffs or barriers between countries was first articulated by Adam Smith in 1776 in “The Wealth of Nations,” showing that even if a country has an absolute advantage in producing goods, …
UK can cut interest rates a lot
In recent months, official interest rates have been cut worldwide as inflation has fallen sharply from the peak of over 9% following the end of the Pandemic and Russia’s invasion of Ukraine, which drove up global food and energy prices, see chart 1. Global price inflation has fallen to the rates before the Pandemic and …
Immediate reaction to the October Budget, 2024
This is the first Labour Budget since 2010, and the first by a woman in UK history. It is aimed at raising economic growth in the long run, funded by tax rises and increased borrowing in the short term. The tax rises mainly came from employers’ National Insurance contributions and employers’ contributions to pensions, which …
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