Once inflation arises, reversing course is difficult. Businesses shut down or relocate, unemployment soars and we enter an economic contraction.
Government needs to reform the stucture of expert advice, and publish serious analysis of the cost of the options they face.
Theresa May thought aloud about low interest rates. Mark Carney hit back and no more was heard from her. Time for others to do so?
Replying to Alex Morton’s column of a week ago, the ASI’s Senior Fellow argues that the response to the financial crisis was imperfect, but more right than wrong.
Lower interest rates and monetary manipulation have been presented as the solution to our economic woes. But increasingly they create them.
Mark Carney the “unreliable boyfriend”. Mario Draghi’s forthcoming downfall. Plus: will we ever get to hear Jared O’Mara’s maiden speech?
Not only would many borrowers feel pain, but the Opposition might well be tempted to seize the chance to pile on the pressure.
The engaging, diminutive economist economist died ten years ago today. We still enjoy the fruits of his genius.
She needs the larger majority that a poll would deliver if she is to achieve her programme at a time of pre-Brexit turbulence.
It is tempting to wish him gone. But, like everything else post-June, the future of the Bank should be subject first and foremost to the requirements of Brexit.
The Prime Minister and Hammond must choose between risks.
Overall, my advice is not to seek to reduce interest rates yet further which could have contrarian effects.
We should never forget Herbert Stein’s Law – “if something cannot go on forever, it will stop”.
Before ceding further control to the “technocracy”, we ought to examine its track record – especially in regard to economic matters.
Unlike much of Europe, Britain has, thus far, dodged the deflationary bullet. But there’s no room for complacency.