Which Way Now? Economic Policy after a Decade of Upheaval: A CAGE Policy Report


Vera E. Troeger, University of Warwick; Charlotte Cavaille, Georgetown University and CAGE; Federica Liberini, ETH Zurich and CAGE; Michela Redoano, University of Warwick and CAGE; Anandi Mani, University of Oxford and CAGE; Helen Miller, Institute for Fiscal Studies; Ioana Marinescu, University of Pennsylvania; Claire Crawford, University of Birmingham and CAGE; Mariaelisa Epifanio, University of Liverpool and CAGE; Sascha O. Becker, University of Warwick and CAGE; Thiemo Fetzer, University of Warwick and CAGE; Dennis Novy, University of Warwick and CAGE; Daniel Rueda, University of Oxford and CAGE; Daniel Stegmueller, Duke University and CAGE; Andrew J. Oswald, University of Warwick and CAGE; Eugenio Proto, University of Bristol and CAGE; James Kirkup, Social Market Foundation; Thomas Pluemper, Vienna University of Economics and CAGE; Arun Advani, University of Warwick and CAGE; Roland Rathelot, University of Warwick and CAGE; Thijs van Rens, University of Warwick, CAGE and Institute of Labour Economics; Richard Harris, Durham University; Nicholas Crafts, University of Warwick and CAGE; Michael McMahon, University of Oxford and CAGE; David Miles, Imperial College


Most, if not all advanced economies have suffered gravely from the 2008 global financial crisis. Growth, productivity, real income and consumption have plunged and inequality, and in some cases poverty, spiked. Some countries, like Germany and Australia, were better able to cope with the consequences but austerity has taken its toll even on the strongest economies. The UK is no exception and the more recent period of economic recovery might be halted or even reversed by the political, economic, and policy uncertainty created by the Brexit referendum. This uncertainty related risk to growth could be even greater if the UK leaves the economic and legal framework provided by the EU.

This CAGE policy report offers proposals from different perspectives to answer the overarching question: What is the role of a government in a modern economy after the global financial crisis and the Brexit vote? We report on economic and social challenges in the UK and discuss potential policy responses for the government to consider.

Foreword by: Lord O’Donnell of Clapham.



February 1, 2019