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

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

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

Forward guidance goes into reverse

It is the new way of doing central banking. It is called forward guidance. It means that central bankers are telling us what they are going to do in the future under different circumstances. In one fell swoop they have done away with an industry; an industry called predicting interest...Read More

Posted Aug 16, 2013

Fast fast forward, forward

You may remember the ads – it must have been around 20 years ago. They were for a magazine called ‘Fast Forward’ and for a few months they were on TV all the time – or so it seemed. Jeremy Beadle features in the ads and the jingle went “fast,...Read More

Posted Aug 08, 2013

Does the recovery prove that QE works?

Now some surveys are suggesting that parts of the UK economy are enjoying their best growth since 2006. So is that it then? Is the crisis that began in 2008 well and truly over? And here is another question: does it just go to show the government was right all...Read More

Posted Aug 06, 2013

Bank of England does nothing

If it had done something, it would have been a surprise. The Bank of England has chosen to leave monetary policy where it is for another month.

The news on the UK economy has been a touch better of late, with Q1 seeing 0.3 per cent growth and Purchasing...Read More

Posted May 09, 2013

IMF says QE is not causing inflation

I want to see QE, more QE and more QE said the IMF yesterday. Well, actually it didn’t use those words precisely. Its senior economist John Simon said at a press conference yesterday: “When you balance the risk, we think the fear of high inflation in the future shouldn't prevent...Read More

Posted Apr 10, 2013

Bank of England stays put

Last month three members of the Bank of England MPC, including the bank’s Governor Mervyn King, voted for more QE. The same three members voted for more QE in the previous month too. We don’t yet know what these three musketeers voted for this time, but it seems reasonable to...Read More

Posted Apr 05, 2013

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