Tax and Fiscal Policy
Every pillar of a free society is under threat during the current pandemic. To avoid bad long-term economic outcomes and further threats to our liberty, we need to diagnose what kind of economic event this is. Covid-19 is a supply shock. Huge amounts of capacity are being taken out of the economy. It would not ... Continue reading

Professor Philip Booth writes for CapX

Free marketeers are reluctant to consider higher taxes to pay for the government's current corona-related spending but they should be "more allergic to the narrative of fiscal stimulus, with its subliminal message that we are getting something for nothing", says Professor Philip Booth, Senior Academic Fellow at the Institute of Economic Affairs. Writing for CapX, ... Continue reading

Victoria Hewson writes for The Telegraph

Coronavirus proves that “there really is such as thing a society” said the Prime Minister in a video message last night, as he paid tribute to the efforts of public and private sector workers, volunteers, and the British people for complying with instructions to stay at home. But as the IEA's Head of Regulatory Affairs Victoria ... Continue reading

Julian Jessop quoted by The Sun

Following claims by Jeremy Corbyn that the measures taken to support the economy during the coronavirus pandemic show he was right to push high public spending during the general election Julian Jessop, Economics Fellow at the Institute of Economic Affairs, said "As usual, he’s missing the point." Quoted by The Sun, Julian said "The current ... Continue reading

Julian Jessop quoted by NewsWeek

"The objective is that we actually want a recession because we want people to stop what they would normally do. We need to accept the economy is going to contract sharply, we need to accept that it is going to happen. It is what we want given that we want social distancing to limit the ... Continue reading

Julian Jessop quoted by The Times

Commenting on the likely economic impact of coronavirus, IEA Economics Fellow Julian Jessop predicts that the contraction in the UK "will be like a handbrake turn, rather than a slow-motion car crash." The impact would be felt threefold, in “a blow to sentiment” as seen in the collapsing stock markets, in the disruption to supply ... Continue reading
Economic Theory
Even if not a technical recession (two quarters of negative growth), a severe coronavirus-induced downturn looks certain across major economies. Markets signal it. Top economists predict it (a recent IGM poll showed 62% to 8% “agreeing” it would happen.) And many “feel it” already – from disruptions to supply chains and work arrangements, to collapsing ... Continue reading

Julian Jessop writes for CapX

Extraordinary times require extraordinary policy responses, writes IEA Economics Fellow Julian Jessop for CapX. While the usual objections to a permanent system of universal basic income remain as valid as ever, Julian makes the case for implementing a temporary universal payment to help tackle the economic fallout from coronavirus. Read the full article here.... Continue reading

IEA quoted in The Sunday Times

Responding to the Chancellor's plans to increase public spending and borrowing, the IEA's Director General Mark Littlewood warned that the chancellor should be careful not to see public spending as the only way to achieve economic growth. Mark's comments were quoted in The Sunday Times and The Sunday Times (Ireland). Read the full article here.... Continue reading

IEA quoted by the Independent

Responding to the Chancellor's announcement of a huge increases in spending, the IEA was quoted by the Independent. The IEA warned that “The chancellor seems to think the only best way to boost growth is through public spending". Read the full article here.... Continue reading