The Impact of the Bonus Culture on the UK Economy

by | Oct 1, 2020 | News, Papers

World Economics • Vol. 21 • No. 3 • July–Sept 2020, 1st October 2020 Key Points • The decline in UK tangible investment since 2000 has led to a sharp decline in labour productivity and the trend growth rate of the UK economy. A similar decline in the US was caused by...

Investment and Unemployment

by | Jul 27, 2020 | News, Papers

The future is unknown, but we should not count on being improbably lucky. Covid-19 has increased the need for a large increase in business tangible investment. This was necessary before the pandemic and has because essential to prevent a large rise in unemployment....

Zombies & Creative Destruction

by | Jul 13, 2020 | News, Papers

Low interest rates have allowed companies to survive which would otherwise have become bankrupt. This truth has fathered a popular fallacy* which claims that it has a damaging impact on productivity, because these weak survivors, termed zombies, do not invest and as...

A Schumpeterian view of zombie companies

by | Jun 29, 2020 | News, Press

Financial Times – Letters, 29th June 2020 Sir, Your leader (“Reasons to fear the march of the zombie companies”, FT View, June 25) confuses companies with their businesses. You rightly argue that companies, which can cover their variable costs, should not be...

The Economics of Covid-19

by | May 26, 2020 | News, Papers

Economics is not good at forecasting but better at cures. We need to switch from the former, which dominates the news, and concentrate on solving our major problem. Before the pandemic this was stagnation, we now face the prospect of a long-term decline in our...