With the unequivocal manner in which some UK Coalition Government have been speaking recently, people might be forgiven for thinking that the pace of government deficit reduction set out by George Osborne in the 10th June 2010 emergency budget had instead been handed-down to him by God at Mt Sinai. However, as noted at a […]
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 […]
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 […]
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 […]
September 1, 2010
The Times, Bloomberg and the Daily Mail have all reported this morning on news released yesterday by the Bank of England showing that, in the words of the Daily Mail: “Between April and June banks and building societies were forced to ‘write off ‘ £3.5bn, around £40m every day, the largest amount since records began.” […]
August 26, 2010
Cristina Checherita and Philipp Rother of the ECB have recently published an empirical study looking at the effect of high government debt on GDP growth, snappily entitled “The Impact of High and Growing Government Debt on Economic Growth: An Empirical Investigation for the Euro Area“, in which they find that: “This means that, on average […]
October 18, 2010
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