In this paper we construct a framework for evaluating the macroeconomic impact on the UK economy of policies that are aimed at reducing the number of people receiving social security benefits and getting them into employment. By means of model simulations we find that a 5 per cent reduction in...

After a long period of robust growth and low inflation, the economic outlook has darkened. Growth is slowing and inflation is rising. GDP is forecast to grow by 1.5 per cent in 2008 and 1.4 per cent in 2009. Much of the growth will come from net trade, which will contribute 0.5 per cent to...