Review of Labour’s Economic Performance Since 1980s,NIESR Announced

Posted: April 23, 2010 in Uncategorized
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National  Institute of Economic and Social Research  Announced Its Review of Labour’s Performance  Since 1980s at a Press Conference  in Westminster today,24 April.

Dr Martin Weale ,the director of  NIESR and Timothy Besley  from London School of Economics   revealed their researches  about Labour’s Economic Performance  and Monetary Policy Under Labour respectively  at  a press conference  at NIESR building  in Westminster  on Friday 24 April .

Dr Weale  started his lecture with  Gordon Brown’s  2006 claims : “The test of our  monetary policy is that we are achieving sustained stability and growth ,not just for a year or two but for the long term. And the test of our fiscal policy is that we match a commitment to balance the current budget over the economic cycle with an ability to make the necessary long term investments.” ,  and  evaluated the Labour’s economic performance  with related graphs and figures  .

Dr Weale  also compared Labour’s economic performance with Conservatives’  performance between 1980 and 2010 during  his clearly delivered  lecture.

Dr Martin Weale evaluates Labour's Performance

Director of NIESR Dr Martin Weale with a TV presenter at press conference after his speech.

Dr Weale surmised that  that Labour’s  policy structure has failed while GDP performance has survived the recession and productivity has improved. However Labour market performance is better than in 1979-1997 but not if compared to other G7 countries  and Labour’s performance during the recession has been poor.

Timothy Besley explained inevitability of inflation targeting   in macroecomies  which came to life in 1970s.

“Inflation targeting in the UK is often associated with Labour’s decision to grant the Bank of England independence in May 1997.” said Besley.

Besley continued his speech with volatility of inflation in the UK  since 1992  and explained the challenges UK economy has to face in future .

According to Besley’s research ,UK monetary policy must face up to some formidable challenges.First ,to learn how to control inflation and stabilise  the economy using previously untried tools.Second ,to maintain the credibility of the inflation targeting  targeting regime in the face of greater independence between monetary and fiscal policy ,and between monetary policy and support to the banking system and financial markets.

Weale and Besley took questions from the press members at the end of their lectures.

NIESR will hold its regular press conference to present the forecast for the UK and World Economies on Thursday  29th April at 11am.

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