No CrossRef data available.
Article contents
Towards a New Economy? Recent Inflation and Unemployment in the United Kingdom
Published online by Cambridge University Press: 26 March 2020
Abstract
This is the last article in the series contributed to the Review from the CLARE Group of economists. Since the Group was formed in 1976, with the aim of counteracting the polarisation of opinion among economists at the time, over fifty articles have been published, initially in the Midland Bank Review. But members of the Group have lately come under increasing pressure of time from academic and other commitments, and it has reluctantly decided to dissolve itself. On doing so, it would like to record its warm thanks to the National Institute Economic Review for the hospitality of its pages since 1988. As for previous articles, drafts of this one have been discussed among members of the Group, but responsibility for the views expressed rests with the author alone.
From 1993 to 2000 in the UK, there was a welcome twist to the relationship between unemployment and inflation, subverting received ideas about the ‘Phillips Curve’. This is best accounted for by the onset of a relatively moderate rate of growth of real wages, which also helped the monetary authorities to keep inflation close to the target set. Several causes can be suggested for this moderation, but the major issue now is the extent to which it can be reckoned on to continue. There are reasons for taking a cautious view of the prospects.
- Type
- Articles
- Information
- Copyright
- Copyright © 2002 National Institute of Economic and Social Research
Footnotes
∗
M.J. Artis, T. Besley, A.J.C. Britton, W.A. Brown, W.J. Carlin, J.S. Flemming, C.A.E. Goodhart, J.A. Kay, R.C.O. Matthews, C.P. Mayer, D.K. Miles, M.H. Miller, P.M. Oppenheimer, M.V. Posner, W.B. Reddaway, J.R. Sargent, P. Seabright, Z.A. Silberston, S. Wadhwani and M. Weale.
References
Balls, E. and O'Donnell, G. (Eds) (2002), Reforming Britain's Economic and Financial Policy, Basingstoke, Palgrave.CrossRefGoogle Scholar
Britton, A.J.C. (2002), ‘Macroeconomics and history’, National Institute Economic Review, 179, January.CrossRefGoogle Scholar
Carlin, W. and Soskice, D. (1990), Macroeconomics and the Wage Bargain, Oxford, Oxford University Press.Google Scholar
Dickens, R., Wadsworth, J. and Gregg, P. (eds) (2001), The State of Working Britain, London, Centre for Economic Performance, London School of Economics.Google Scholar
Kay, J. (2001), ‘What became of the new economy?’ National Institute Economic Review, 177, July.CrossRefGoogle Scholar
King, M.A. (1999), ‘The MPC two years on’, lecture to Queen's University, Belfast, May.Google Scholar
Layard, R., Nickell, S. and Jackman, (1991), Unemployment: Macroeconomic Performance and the Labour Market, Oxford, Oxford University Press.Google Scholar
Mankiw, N.G. (2001), ‘The inexorable and mysterious trade-off between inflation and unemployment’, Economic Journal, 471, May.Google Scholar
Matthews, R.C.O. (1968), ‘Why has Britain had full employment since the war?’ Economic Journal, September.CrossRefGoogle Scholar
Metcalf, D. (2001), ‘British unions: dissolution or resurgence revisited’, in Dickens, Wadsworth and Gregg (2001).Google Scholar
Nickell, S., Jones, P. and Quintini, G. (2002), ‘A picture of job insecurity facing British men’, Economic Journal, 112, 476, January.CrossRefGoogle Scholar
Nickell, S. and Quintini, G. (2001), ‘The recent performance of the UK labour market’, paper presented to the Economics Section of the British Association for the Advancement of Science, September.Google Scholar
O'Mahony, M. (1991), Britain's Productivity Performance 1950-1996, London, National Institute of Economic and Social Research.Google Scholar
Phillips, A.W. (1958), ‘The relation between unemployment and the rate of change of money wage rates in the United Kingdom, 1861-1957’, Economica, 25.CrossRefGoogle Scholar
Wadhwani, S. (2001), ‘Some reflections on the MPC’, speech to the (US) National Association for Business Economics, May.Google Scholar