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.

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…


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 …

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 th…

Electric vehicles: what will happen to fuel duty revenue?

italy future low carbon fuelling

An issue that often arises when discussing a transition to electric vehicles is fuel duty revenues and how and whether governments will enforce new taxes to replace falling revenues.

The first point to understand here is that this will not be a cliff-edge, with a dramatic £30…