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Day care for dogs and the output gap

I am keen on dogs. Recently, I have seen an advert for a special canine toothbrush designed to get rid of the pet’s bad breath, surely a difficult challenge given what dogs get up to. Vans promoting home beauty visits for dogs have proliferated for some time

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Bribing the electorate: new rules of the game thanks to zero inflation

The temptation to believe in the concept of a free lunch is one which has proved irresistible to numerous governments through the ages. Henry VIII, for example, has seized popular imagination once again through the brilliant portrayal of him by Damian Lewis in Wolf Hall. Bluff King

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The 38 per cent tipping point on tax

Ed Miliband’s proposal to tax non-doms more harshly may be good, populist politics. But does it make economic sense? At most, the yield will be around £1 billion, even if people do not alter their behaviour in response to the change in policy. The actual amount generated could

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Capitalism is stable and resilient

The financial crisis did succeed in creating one dynamic new industry.  Since the late 2000s, there has been a massive upsurge in op-ed pieces, books and even artistic performances offering a critique of capitalism. A founder member of the Monty Python team, Terry Jones, is the latest

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Do short-term governments affect the UK’s productivity?

Since the economic crisis labour productivity growth in the UK has been very poor. The Bank of England estimate that output per hour (productivity) is 16% lower than it should be given pre recession trends. With output recovering and high levels of employment, many argue that the

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Why is inflation so low?

Zero inflation is trending. The consumer price index in the UK was at the same level in February as it was a year earlier. The reporting of this figure on the BBC website created some unintended amusement, however. The drop to zero, we were told, was “sharper

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Why are crime rates falling?

Economic statistics are the bane of forecasters’ lives. Cynics might say that this is because the data reveal how bad their predictions are. But a big practical problem is that initial estimates of the state of the economy can be revised substantially. These issues are as nothing

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Open borders or fair wages: the left needs to make up its mind

As published in the Guardian on Tuesday 24th March 2015 as part of their ‘Economics – Immigration Special’ Mass immigration increases inequality. This is the unpalatable fact the liberal left in Britain refuses to accept. Markets are imperfect instruments. But it is not necessary to subscribe to

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Do Budgets really matter?

All eyes will be on George Osborne’s Budget today. An immense amount of media attention and serious commentary will be devoted to it. But do Budgets really matter? How much difference would it make if successive chancellors simply did nothing, apart from indexing various allowances and benefits

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Does Miliband understand the importance of incentives?

Ed Miliband has long had a problem with voters not perceiving him as “normal”. His famous struggle with a bacon sandwich in some ways says it all. But at a much more important level, he seems to have little or no empathy with one of the most

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