Browsing All posts tagged under »Monetary policy«

The Economic Issues Raised by Possible Scottish Independence

July 18, 2011

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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

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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 […]

When Will the Bank of England Raise Interest Rates?

February 16, 2011

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Where do you think the BoE will go with interest rates in Q2 2011? Is there really enough spending in the system to warrant raising them? This question was asked by anonymous reader via Formspring. The table above is taken from the Bank of England’s latest Inflation report and shows the latest market expectations for […]

How to Solve the Eurozone Government Debt Crisis

November 30, 2010

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The bulk of the financial troubles in the Eurozone – at least those which have become apparent thus far – have occurred in the so-called “peripheral” states, ie. small countries that are in huge financial difficulties when viewed individually (ie. Greece, Ireland, Portugal), but are small enough to be rescued by their larger brethren in […]

Fisking Polly Toynbee on the Irish “Bail-out”

November 24, 2010

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Today The Guardian newspaper, published a Polly Toynbee column entitled “Ireland shouldn’t get a penny until it gives up its tax piracy“.  The article is riddled to such an extent with conjecture, half-truths and fantasy economics that I thought it deserved a full-on Fisking, so here goes: The bailout of Ireland and its banks is so odd that […]

The Emerging Split on the Bank of England’s MPC

September 29, 2010

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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

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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 […]