Economic News

Fiat money and a plan for creating growth by magic wand

For an economy to grow it needs the money supply to expand. That’s the point that those who favour a return to the gold standard overlook. In a static economy with no innovation and which will look the same in a hundred years’ time, a gold standard would do nicely....Read More

It’s a matter of maths: consumer inflation is set to fall and house price inflation is set to rise

As far as the Bank of England is concerned, the inflation panic is over for now. You may recall that many feared that one of Mark Carney’s first acts as governor of the Bank of England would be to put pen to paper and knock off a quick letter to...Read More

Posted Sep 18, 2013

The cash mountain and why the UK economy may be set to grow much faster than even the most optimistic are predicting

'Give me a place to stand, and I shall move the world,' or so said Archimedes – supposedly. He was expounding upon the benefits of levers. A small action can lead to a massive reaction, if the pivots and levers are right. It is like that with the economy too,...Read More

Posted Sep 16, 2013

Can this be true: UK economy set to boom?

If 10cc were to write a song about the latest surveys on the UK economy they might say: “I don’t like surveys. Oh no, I love them.” The fact is that the surveys are not just good; they are remarkable, but can they really be right?

It was told...Read More

Posted Sep 05, 2013

Will UK interest rates be rising soon?

The Bank of England says a rate hike is not likely until 2016; the markets are pricing in a 2015 hike. But might they rise even sooner than that?

These days it’s about unemployment. The Bank of England now says that for as long unemployment is above 7.0 per...Read More

Posted Sep 05, 2013

Will UK interest rates be rising soon?

The Bank of England says a rate hike is not likely until 2016; the markets are pricing in a 2015 hike. But might they rise even sooner than that?

These days it’s about unemployment. The Bank of England now says that for as long unemployment is above 7.0 per...Read More

Posted Sep 05, 2013

UK leads manufacturing revival

It was good news across most of the world yesterday – at least it was good news as far as manufacturing went. And for the UK, which really needs a recovery made of more than just rising house prices, the news was especially good. Nay, ignore that. It was spectacularly...Read More

Posted Sep 03, 2013

And now construction sees a big boost

This morning the latest Purchasing Managers’ Index (PMI) on UK construction was out, and boy was it good. It was especially good for residential construction.

The headline PMI for UK construction hit 59.1 – that is seasonally adjusted by the way. To put this in context, any score over...Read More

Posted Sep 03, 2013

Carney promised but the markets don’t believe him

The threat to quantitative easing – or QE – is like a nuclear deterrent. If rates are forced up by the markets, we will use QE, suggests the Bank of England, and therefore there is no need for it, as markets price in what might happen if they don’t heed...Read More

Posted Aug 29, 2013

The wind farm bias

Did you read the one about wind farms that can only produce enough electricity to make a few cups of tea? What a scandal! Why do we need these cursed wind farms? Yet take another look, and it turns out that actually wind farms are growing in importance all the...Read More

Posted Aug 27, 2013

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