March 06, 2018
March 2018, Mark Weisbrot and Lara Merling
Despite high levels of employment after eight and a half years of economic growth, the UK economy is facing some serious economic challenges: long-term rising inequality, real wages that are still below their 2009 peak, a collapse of productivity growth, and the worst level of regional inequality in the European Union. The unusual uncertainties surrounding Brexit also pose a serious threat that has been much discussed. However, the government’s macroeconomic policies may also compound the risks associated with Brexit and make it more difficult to solve the economy’s long-term problems. This paper looks at some of the details of the above challenges, with a focus on macroeconomic policy.
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