Forthcoming ASI research on education quality is featured in City AM

A forthcoming report on the link between education quantity and economic growth – written by ASI Fellow Gabriel Heller Sahlgren – was featured in City AM.

Read the article here.

In a forthcoming report for the Adam Smith Institute (ASI), Gabriel Heller Sahlgren has shown that “the relationship between education quantity and economic growth is shaky at best”. Indeed, “there is currently no robust support for the idea that education quantity increases countries’ economic well-being (at least in developed countries).”

In contrast, Sahlgren’s own econometric research and global literature review in the ASI report shows that education quality – as measured by international test scores, for example – has a very powerful impact on economic growth. In fact, the results are stunning.

Ben Southwood comments on Mark Carney’s role in the UK’s economic recovery in City AM

The Adam Smith Institute’s Head of Policy, Ben Southwood, was quoted in City AM discussing Mark Carney’s role in the UK’s economic recovery.

Carney’s appointment was announced on 26 November 2012 by chancellor George Osborne. The Canadian had previously ruled himself out of the running, so the news was a surprise. If investors were overwhelmingly positive, we’d expect to see stocks appreciate as a result.

So what happened? Ben Southwood, head of policy at the Adam Smith Institute, says that the FTSE 350 barely rose that day, nor when he came into office last year, or even when Carney introduced forward guidance in August.

And since Carney’s arrival was announced the pound has strengthened against the dollar, while inflation has declined. Taken together these three facts imply that Bank policy “has been a relatively small factor in the nascent recovery,” says Southwood, “just as inflation spikes were out of the Bank’s hands in 2011, real GDP improvements are also likely coming from supply-side improvements now”.

Southwood highlights Japan as a comparison. There Bank of Japan governor Haruhiko Kuroda and Prime Minister Shinzo Abe “really have made the difference” through monetary policy. Stocks are way up, the yen is way down, and inflation has risen.

 

Director of The Entrepreneurs Network writes for City AM

Director of The Entrepreneurs Network, Philip Salter, writes for City AM – “The workspace, the incubator, and the accelerator: What you need to know”

Read the article here.

“It’s a truism of entrepreneurship that the road to riches is full of at least as many lows as highs. That’s why many entrepreneurs don’t take the leap until they meet the right partner to jump into business with. This isn’t just about co-founders having complementary skills; the support of a business partner can be invaluable. For better or worse, it is often the difference between giving up and persevering.”

Ben Southwood is quoted in City AM on the Bank of England’s inflation policy

The Adam Smith Institue’s Head of Policy, Ben Southwood, was quoted in City AM this morning on the Bank of England’s inflation policy.

Read the article here.

“Ben Southwood, head of policy at the Adam Smith Institute, argues the opposite. “Under half of the population can tell you who sets the base interest rate”, says Southwood, implying that policy simply isn’t well understood. As for working well throughout the business cycle, he says that a regime of inflation targeting has seen spending growth “anemic” since the financial crisis. NGDP growth still remains below its long-term trend.”

Ben Southwood writes on NGDP targeting for Conservative Home

The Adam Smith Institute’s Head of Policy, Ben Southwood, wrote a comment piece for Conservative Home about the importance of nominal GDP targeting.

His article follows the annual Adam Smith Lecture, at which Prof Scott Sumner delivered an address on the same topic.

Read the article here.

“Monetary policy may seem dry, but it has the power to put economies on life support, or if done correctly, bring them back to life.”