Prime, Policy Research in Macroeconomics

What has the horror at Grenfell Tower to do with economists? And what have the lives lost at Grenfell Tower to do with the government’s budget deficit?  A great deal, I will argue here. When on Twitter a few days ago I raised the issue of the shared responsibility that economists have for this ghastly tragedy, I was attacked....

Labour’s shock success in the “snap” general election left poll takers more than slightly embarrassed (except YouGov and Survation), and political commentators scrambling to cover their backsides.  In their struggle to adjust to a resurgent Labour Party led by the “unelectable” Jeremy Corbyn, the nominal progressives among the...

The agenda of austerity economics is supplemented with the sale of public assets via privatisation programmes. Neoliberal dogma argues that this ‘structural reform’ aims at ‘reducing the government’s deficit and debt’ and to induce ‘competitiveness’. Orwell would have been impressed by this exercise of doublespeak.Classical thinkers such as Adam Smith and John Stuart Mill viewed State assets such as ports, water, electricity, railway companies, the hospitals and the...

This article is co-authored by Ann Pettifor and Jeremy SmithOur “Open Letter” published yesterday has been welcomed widely. In this post, we want to respond to the constructive comments and queries made about the practicality of our proposed strategy, particularly around our ideas for the process of engagement with the EU. First, we want to underline: Brexit negotiations with EU partners are due to begin in a few days. There is great urgency, therefore, for Labour to develop...

This article is co-authored by Ann Pettifor and Jeremy SmithAfter an exhausting and successful national campaign, it is hard for campaign strategists to think of next steps. But we are at a critical historical juncture, and a range of opportunities present themselves. Choosing the right political and economic strategy now is vital. Here’s a proposal. Labour should pursue two major complementary policy goals. The first: to end austerity, and implement a Green New Deal across...

In a recent interview, Theresa May was asked by Andrew Neil how the Conservatives would fund their manifesto commitments on NHS spending. Given that the Conservatives chose not to cost their manifesto pledges, May was unable to answer. Instead she simply repeated that the Conservatives are the only party that can deliver the economic growth and...

The Financial Times’ economics editor, Chris Giles, has had a busy few days. He has written several interesting articles, covering the absence of “the deficit” as a big election issue (as a hawk he’s really not happy about that), the OECD’s new forecast for the UK economy, and the marked similarities between the economies of...

Today's Observer newspaper (4th June), publishes a letter signed by 130 economists, under the heading "Labour’s manifesto proposals could be just what the economy needs".  We felt it important to reproduce the contents of the letter here, together with the full list of signatories (who include PRIME's directors Ann Pettifor and Jeremy Smith, and...

A sound national economy is NOT a matter of bean-counting!  Image with thanks to pearlsofprofundity The Way It WasSince 2010 the ideology of balanced budgets has dominated economic policy debate in Britain, from the micro (public institutions such as NHS trusts) through to the macro (George Osborne’s...

I was looking at my Tweetdeck this morning when I came across this tweet from the Brookings Institution: Now it is clearly a Good Thing in principle for the US Federal government’s budget to be explained in clear and simple ways, but why – I asked myself – do Brookings choose to concentrate today on interest payments (which form just 6% of outlays)...