This text provides an overview of the key issues concerning the performance of the labour market and policy in the UK, with focus on the 2008 financial crisis, the ensuing recession, and its aftermath. It contains assessments of the effects of many policies introduced over the last 10 years in...

A Real Business Cycle model of the UK is developed to account for the behaviour of UK nonstationary macro data. The model is tested by the method of indirect inference, bootstrapping the errors to generate 95% confidence limits for a VECM representation of the data; we find the model can explain...