12 Days of Thinking
To take us to 2017, the University of Sheffield has asked academics to reflect on the most pressing issues of our time. Join in the chat on Twitter using the hashtag #12daysofthinking
Day 10: Money
We need a new national business model via an active industrial strategy
Dr Craig Berry, Deputy Director, Sheffield Political Economy Research Institute (SPERI) at the University of Sheffield
"The post-crisis performance of the UK economy continues to underwhelm – deriving, in large part, from a poor record on enabling the most productive industries to thrive. Given the historical role of the European single market in helping the UK to punch above its weight in the global economy, the spectre of Brexit underlines the need to devise a new national business model via an active industrial strategy."
Will 2017 see us fall into 'hard Brexit'?
Dr Jonathan Perraton, Department of Economics, at the University of Sheffield
“After this year’s turbulence people may be hoping for calmer times in the New Year, but the British government intends to invoke Article 50 for Brexit in 2017. This is likely to lead to slowing growth and a rising cost of living from the falling pound. Crucially we are promised the shape of the Brexit plan – can Britain retain much of its current access to EU markets through compromise or will we fall into a ‘hard Brexit’?”
The impact of 'loose' money
Dr Scott Lavery, from the Sheffield Political Economy Research Institute (SPERI), at the University of Sheffield
“Money is a mechanism which allows capitalist economies to displace crisis tendencies into the future. Since the 2008 crash, loose monetary policy - record low interest rates and ‘Quantitative Easing’ - have been central to economic recoveries across the West. But at what cost? The incomes of asset-holders have risen whilst real wages have declined to an unprecedented extent. ‘Loose’ money displaces the symptoms of the current crisis whilst simultaneously laying the foundations for the next one.”