Browsing All posts tagged under »Central bank«

The Economic Issues Raised by Possible Scottish Independence

July 18, 2011


On 5th May 2011, the first time since devolution in July 1999, the Scottish National Party won a majority of seats in the Scottish Parliament at Holyrood.  One of the key manifesto promises of the party is to hold a referendum on Scottish independence before 2016.  While political commentators have begun discussing the potential political […]

In Support the Bank of England on Monetary Policy

March 28, 2011


While reading the Office for Budget Responsibility‘s United Kingdom Economic and Fiscal Outlook – March 2011 over the weekend (yes, I had that much fun), I noticed the chart below: It shows the difference between the current rate of UK inflation (CPI) and an estimate of inflation had sales taxes (VAT and excise duty on […]

Why We Need The Recession

October 15, 2010


While the thrust of this article is undoubtedly controversial, I feel that many people are forgetting that a recession is a normal part of the business cycle and the processes that take place during a recession are necessary to lay the groundwork for any recovery.  Below are some of the key reasons why we need […]

The Emerging Split on the Bank of England’s MPC

September 29, 2010


The Bank of England’s Monetary Policy Committee (“MPC”) has maintained interest rates at current 0.5% level since March 2009 and its Asset Purchase Programme (a.k.a. quantitative easing) at £200bn since November 2009, the consensus amongst the committee members is now beginning to break down, creating uncertainty regarding the future direction of monetary policy.  One member […]

The Partial Success and Unintended Consequences of Quantitative Easing

September 21, 2010


When the Bank of England formally launched its quantitative easing program in March 2009, the minutes from the meeting stated that this policy mechanism would work by: stimulating the demand for corporate credit instruments [and] improve the supply of funds to the corporate sector. The purchases would also mean that the banking system would be […]