Put like that, of course, it sounds ridiculous, but the fact that Krugman is a Nobel prize-winning economist gives Labour’s calls for a U-turn on the economy an intellectual credibility they would otherwise struggle to attain. All the great economists – from Adam Smith to John Maynard Keynes – were as much moral philosophers as dispassionate analysts of events, and Krugman is no exception, preaching his message with all the passion of the religious zealot. He feels our pain and begs us to let him help. “The road out of depression and back to full employment is still wide open,” he insists. “We don’t have to suffer like this.” Krugman may appear loud and radical, but he follows a fairly standard Keynesian text. By his ... Continue reading →
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Interest rates have been cut close to zero, and the patient still barely stirs. Nor can the Bank of England be accused of stinting on quantitative easing, having already bought up a quarter of the national debt. Since the crisis began, the Old Lady has expanded her balance sheet more than any other central bank in the western world. Minutes to the last meeting of the Monetary Policy Committee, published yesterday, reveal growing support to do even more, even though there is as yet little evidence that QE has any effect other than to lower the Government's borrowing costs and damage final-salary pension schemes. QE has nevertheless become the default growth policy of choice, a process engaged in more for the sake of being seen ... Continue reading →
Interest rates have been cut close to zero, and the patient still barely stirs. Nor can the Bank of England be accused of stinting on quantitative easing, having already bought up a quarter of the national debt. Since the crisis began, the Old Lady has expanded her balance sheet more than any other central bank in the western world. Minutes to the last meeting of the Monetary Policy Committee, published yesterday, reveal growing support to do even more, even though there is as yet little evidence that QE has any effect other than to lower the Government's borrowing costs and damage final-salary pension schemes. QE has nevertheless become the default growth policy of choice, a process engaged in more for the sake of being seen ... Continue reading →
Euro neuro Posted by Izabella Kaminska on May 23 10:01. From the lyrics of this year’s Montenegran Eurovision entry “Euro neuro” (pronounced: ɛw-ro nɛ-ro): EURO neuro Euro neuro Euro neuro Monetary brake dance Euro neuro Euro neuro Euro neuro Give me chance to refinance And… just in time for the big contest on Saturday… the market is now giving the Montenegran entry that final little push in terms of credibility, with the euro sliding on all fronts on Wednesday. Against the dollar: (And here’s the 1-year picture): Against the pound: And that ever flattening line against the Swiss franc: Against the dollar, the euro is now at its lowest ($1.2620) since August 2010. This entry was posted by Izabella Kaminska on Wednesday, May 23rd, 2012 ... Continue reading →
