This paper summarises the results of a major revision of the data underlying a previous study of Britain's productivity position in an international perspective (O'Mahony, 1999). Thus it examines the productivity record of the UK relative to the US, France, and Germany. There have been a number of changes since the original study which necessitated a revision rather than a mere updating of previous estimates. These included changes to national accounts definitions of value added to include immaterial investments following the adoption of SNA93 by these countries, labour input revisions which allow the distinction between jobs and persons employed, extensive revisions to industrial classifications and the desire to present estimates for unified Germany rather than the former West Germany. In addition the data series were extended to include a division of capital stocks by asset type which allows for a more refined treatment of capital input in explaining relative labour productivity performance. Hence the first aim of this paper is to see if these changes have significantly altered perceptions of Britain's relative productivity position. The evidence on the extent to which Britain has improved its relative productivity position in the past decade is presented and the paper re-examines the issue of the impact of its investment record in both physical and human capital on Britain's labour productivity shortfall. Since the publication of the original study, much of the productivity literature has focused on the new economy and, in particular, the impact of information and communications technology (ICT) on productivity trends. The association between ICT and sector productivity growth rates is also considered below.

Concern over poor standards in mathematics among English school leavers has led to a number of government initiatives in recent years. Without a secure foundation of mathematical understanding and competence during the primary school years, later learning in mathematics is problematic. This paper examines recent major initiatives at the primary stage of schooling and their effect on raising standards, including the National Numeracy Strategy and the Improving Primary Mathematics (IPM) project. The latter project, influenced by successful Continental approaches to teaching mathematics, aimed both to raise average standards of attainment and to reduce the large variation in attainment that has, in the past, characterised the performance of English pupils.

Although the new teaching approaches, and the innovatively detailed teaching materials, developed by the IPM project have enabled significant improvements to be effected, concern remains over the low attainment in England of an unduly large proportion of pupils (as compared with Continental schools). It is suggested that serious consideration needs to be given to adopting arrangements that are the norm in several other countries — namely, to introduce some flexibility in age of entry to schooling (at present in England this is governed strictly by date of birth). Such a change would, it is suggested, significantly reduce the number of low attainers and range of attainment within a class, and make a teacher's task of successful interactive whole-class teaching more manageable.

This article considers several key problems facing the teaching and learning of mathematics at secondary level. In particular, it studies the need for better defined aims for mathematics teaching; the standards currently being attained by students viewed from an international perspective; the validity of many of the assessment procedures on which the government places such emphasis; and the underlying problem, that of an insufficiency of well-qualified mathematics teachers — a problem that, for several decades, governments have chosen to ignore. Suggestions are made on how the various aims of mathematics education might be better met.

The paper uses MULTIMOD to analyse the macroeconomic effects of oil price shocks, distinguishing between temporary, more persistent, and permanent shocks. It provides perspectives on several findings in the literature and the key role of monetary policy in influencing macroeconomic outcomes. Specific attention is paid to the channels through which oil price increases can pass through into core inflation, the implications of delayed policy responses, and the relative merits of leaning in different directions when the correct policy response is uncertain.

Macroeconomic behaviour varies according to the character of the policy regime. There is therefore no truly ‘general’ theory which will apply at all times and in all places. Over the past hundred years, one model may be appropriate to the period of the gold standard, another to the interwar years, another to the so-called ‘Golden Age’ after the Second World War, and so on. Expectations, which depend on confidence in the regime, determine the stability of both prices and output. Institutions also adapt in ways that may support, or ultimately undermine, the foundations of the policy regime.