The onset of the financial crisis in 2008 brought an end to the ‘Great Stability' period, making prospects for UK and global economic growth appear not just weaker, but more uncertain. This elevated uncertainty is likely to have adversely affected spending decisions and contributed to the...

Private equity, the business of buying, building and selling companies for a profit, is still a relatively young asset class that is not widely understood. This article applies microeconomic analysis to explore what outcomes agents are hoping to achieve, what incentives are in place to foster...

While profit maximisation is clearly defined in theoretical models, in practice producers selling their goods and services can find it hard to measure the price sensitivity of customer demand. While marketing departments often rely on aggregated data to analyse the interlinkages between selling...

The choice and structure of a country's exchange rate regime has wide implications for the effectiveness and flexibility of monetary policy tools, as well as for economic and financial stability. We examine 21 instances where exchange rate pegs have been abandoned in the past, to gauge the...

Theory tells us that output, the capital stock and the user cost of capital are related. From the capital accumulation identity, it also follows that the capital stock and investment have a long-run proportional relationship. The dynamic structure thus implies a multicointegrating framework, in...