The Financial Times:
Annual FT economists' survey: political risk is back on the worry list
1 January 2015
More than 60 per cent of 85 economists who responded to a question on the issue for the Financial Times's annual survey of predictions for the year ahead said political uncertainty could affect business and consumer confidence. Respondents said an unclear result would be particularly worrisome.
Q: How important is the result of the UK election to the country's economic performance in 2015?
John Van Reenen, Centre for Economic Performance at the London School of Economics and Political Science
Probably not dramatic in 2015, but important consequences 2016-2020. If there is a very fractious coalition this will be increase policy uncertainty which could have a negative effect Also, the emergence of a Ukip-Conservative coalition would have serious consequences for immigration and Europe.
Sir Christopher Pissarides, Regius Professor of Economics, LSE and Associate of the Macro Programme at the Centre for Economic Performance
I expect to see different policies followed by the two main parties in their spending programmes. Inflationary pressures should be stronger under labour but inequality in income and in the improvement of living standards should be less under Labour.
This article was published by The Financial Times on January 1, 2015
Link to article here
Related links
Christopher Pissarides webpage
Macro Programme webpage
John Van Reenen webpage
Productivity and Innovation Programme webpage