Browsing All posts tagged under »Economic growth«

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 […]

Nine Zero-Cost Policies the UK Government can Implement to Encourage Economic Growth

September 16, 2010


Economists know that long-term economic growth is driven by fixed capital accumulation (ie. of manufacturing plant & equipment and communications & utility infrastructure) and increases in factor productivity (ie technological innovation which is a consequence of research and education). Economists also know that lower tax rates lead to higher levels of GDP growth. However, with […]

Why Equity Market Performance is Independent of Economic Growth

September 7, 2010


During my regular intake of business and finance news stories, I have recently come across many pieces that talk about the increased likelihood of a double-dip recession (which may well be correct) and thereafter use this evidence as a reason to be bearish on stocks (with which I disagree). Just last week, the editor of […]

Is the US Closed for Business?

September 3, 2010


I was very surprised by the results of this recently released research from the OECD that ranks countries according to their openness to foreign direct investment (“FDI”).  Entitled “OECD’s FDI Restrictiveness Index – 2010 Update“, the survey ranks countries from zero (completely open to FDI) to one (completely closed to FDI).  The survey considers “four […]