Blogs: Tax & Finance

Changes in society, the economy and the environment have consequences for the call on government spending, for tax revenues and for returns to investment.

March 2020 Budget preview – battling the fiscal headwinds

Napoleon Bonaparte is widely quoted as saying he would rather have lucky generals who win battles than good generals.

The “general” in charge of the British economy – Chancellor of the Exchequer Rishi Sunak – has had a fair degree of luck in his political career so far…

Boris Johnson: what changes for public spending?

Boris Johnson public spending

The excitement of the general election is now well and truly behind us.
The government is apparently striving to re-energise the domestic policy agenda now that ‘Brexit is done’….
Anthony Barker, Director, takes a look at how plans for public spending sit alongside the …

Six big economic challenges facing the new Government

Andrew Sentance

Andrew Sentance, Senior Adviser, Cambridge Econometrics considers what challenges lie ahead for the new Conservative administration.
So it is over. The General Election results are in and we know we will have a Conservative government led by Boris Johnson.

But what will he do…

The impact of a carbon tax in the USA

carbon tax USA

Carbon taxes have largely failed to gain traction in the United States, despite being a key requirement for rapid decarbonisation at a local, state or national level.
Policymakers and voters have declined to endorse them, concerned about costs to consumers and negative impacts o…

E3ME, endogenous money and Modern Monetary Theory (MMT)

Endogenous Money Modern Monetary Theory (MMT) E3ME

Unlike most other macroeconomic models, ours (E3ME) includes endogenous money as a core feature (including borrowing by government).
This difference is important because it allows us to best predict outcomes that might be encountered by our clients. Find out how…
We get a lo…

Taxing food and fuel – impacts on poorer households

It is now widely acknowledged that decarbonisation will not be possible without putting a price on carbon. Some economists (and most modellers outside Cambridge Econometrics) even suggest that a carbon price would be sufficient to meet carbon targets.
But in the UK there is a st…

Saving Santa and the North Pole’s economy

In this light-hearted blogpost our Director, Hector Pollitt wonders how an economist would set about modelling the economy of the North Pole and finds that the challenges are not insurmountable.
But how on earth do you account for ‘magic’?  Is there a currency? What about the e…