Analysis and action on living standards
The Resolution Foundation’s Macroeconomic Policy Unit has been set up with the aim of contributing to a more inclusive and better informed macroeconomic policy debate. It will publish original and rigorous macroeconomic analysis on key policy issues. As well as research undertaken by Resolution Foundation staff and the MPU’s Associates, we will collaborate with, and provide a platform for, high-quality and innovative thinking on macroeconomic policy issues.
Macroeconomic developments play a key role in driving living standards. The unprecedented stagnation in earnings seen since the financial crisis has to a large degree reflected the weakness of aggregate GDP and productivity. While low to middle income households have fared worse than those at the top of the distribution, weak income growth has affected all parts of the distribution. Macroeconomic policy plays a key role in determining macroeconomic outcomes, and so is inextricably linked to living standards. This is particularly true in recessions when macroeconomic plays a vital role in limiting the damage.
 The UK is experiencing high levels of inflation not encountered for 41 years, reaching 11.1 per cent in October. But what matters most for both people and policy makers is how persistent this inflation is, which will influence how
A bleak outlook from the Bank of England as it scales back rate hike expectations
The Bank of England has raised rates by 75 basis points today – the eighth successive increase and the largest since 1989 – to 3 per cent, the highest since November 2008. Despite this historic rise, the big news was
In this edition of the MPO we consider the nature of the inflation challenge facing the Bank of England and the impact of the ‘Mini Budget’ on it. Here it is important to remember that the colossal scale of the
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