The Real Problem Was Nominal: The Crash of 2008

Prof. Scott Sumner, who inspired the US programme of QE3 and was dubbed ‘the blogger who saved the US economy’ by The Atlantic, explains how central banks—not bankers—caused the 2007-8 crash. He goes on further, showing how the European Central Bank is repeating the mistakes the Fed and the Bank of England made in the dark days. And he argues that they can solve the slump and prevent future crises with a market-based, rule-based, stability-focused monetary policy of targeting the level of  nominal GDP.

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The Green Noose

• Despite academics, politicians, and international organisations recognising that the UK is facing a housing crisis, it is currently far less developed than many imagine, especially when compared to similar countries. Indeed, only two members of the EU 27 have less built environment per capita than the UK: the Netherlands and Cyprus. 90% of land in England remains undeveloped, and just 0.5% would be required to fulfil this decade’s housing needs.

• Green Belts are not the bucolic idylls some imagine them to be; indeed, more than a third of protected Green Belt land is devoted to intensive farming, which generates net environmental costs.

• The concept of ever-expanding urban sprawl is mistaken and pernicious. In addition, Green Belts can give rise to “leap-frog development”, where intermediate patches of land are left undeveloped due to restrictions, a phenomenon indistinguishable from what many understand urban sprawl to be.

• By encouraging urban densification, Green Belts take green space away from those places where it is most valued. Each hectare of city park is estimated to be of £54,000 benefit per year, compared to a mere £889 per hectare for Green Belt land on the fringe of an urban area.

• There are substantial welfare costs of Green Belts. They have made accommodation more expensive and smaller, increased costs for businesses (especially relative to other European cities), and have contributed to the volatility of house prices.

• The avenue of reform we favour is the complete abolition of the Green Belt, a step which could solve the housing crisis without the loss of any amenity or historical value – if only politicians and planners had the courage to take it.

• Failing this, we conclude that removing Green Belt designation from intensive agricultural land would also enable the building of all the housing required for the foreseeable future, and could help ameliorate the catastrophic undersupply of recent decades.

• In the short term, simply removing restrictions on land 10 minutes’ walk of a railway station would allow the development of 1 million more homes within the Green Belt surrounding London alone.

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A Divorce for Auntie

In his 1987 report ‘A Divorce for Auntie’, Nicholas O’Shaughnessy of Loughborough University presents objections to the “monolithic” ideological nature of the BBC. Today, the debate on the BBC’s ideological leanings continues, with 41% of those polled in 2013 saying they believed it to display some bias. This considered, O’Shaughnessy’s report remains important to this ongoing controversy.

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Made in the UK: Unlocking the Door to International Entrepreneurs

A ground-breaking survey reveals that the visa system is failing international graduate entrepreneurs who want to start a business in the UK. The report from The Entrepreneurs Network, in partnership with National Union of Students (NUS), surveyed 1,599 graduate international students.

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Foundations of a Free Society—now in Spanish!

Dr. Eamonn Butler’s monograph for the Institute of Economic Affairs, Foundations of Free Society, has now been translated into Spanish, for the 548m speakers worldwide who count it as a first or second language. The book tells how free societies unleash talent and initiative to create prosperity and happiness.

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