Who would have guessed that a former Eastern Bloc country would struggle in reaching equilibrium with economies like that of Germany whilst pegged to the Euro?
Unless you have been living abroad for the past few years, you will probably have noticed that the Monetary Policy Committee (MPC) has not done a very good job of hitting the inflation target. Since CPI inflation was last below the 2% target in November 2009, it has subsequently averaged 3.5%. RPI inflation has averaged 4.3% over the same period.
Anyone reading the tealeaves of today’s Bank of England Inflation Report might seriously consider emigrating. Amidst all the words and charts, the central message from the Bank’s latest forecasts is simple: the Monetary Policy Committee has run out of ideas.
'Twas but a few years ago that the British housing market went into overdrive as everyone and his dog tried to get on the property ladder.
Today’s source of excitement in the City was the scrutiny of the UK’s latest import. With both the ECB and the BoE firmly sitting on their hands and refusing to provide further stimulus, the main event was the grilling of BoE Governor-elect Mark Carney by Parliament’s Treasury Committee.
January is always a busy time for financial markets. When people get back from their Christmas break, and grumble about not going to Davos, there is a natural chance to re-assess the standing of the world economy, and its likely trajectory over the next few years.
Perhaps the best piece of PR that I have seen from a trade body over the past few years has been the ‘zombie company’ theme run by the Institute for Turnaround (IfT). In November last year, the IfT teamed up with insolvency trade body R3 to produce some ‘research’ on this theme. A business was described as a ‘zombie’ if it can only service the interest on the debt it owes, but not pay down the debt itself.
Today’s data from the ONS confirmed what many economists predicted, and probably what most people feared. The UK economy shrank during the final three months of 2012, raising the prospect of a triple-dip recession.
David Cameron's promise of an in/out referendum on Europe will probably be held on the 32nd of October 2034 with the result called by a flying pig.
As the same sex marriage debate rumbles on it is worth pointing out that traditional marriage is not sexist or genderist as any eligible man or woman in the UK can marry any eligible person of the opposite sex.
Marriage is therefore open to everyone.
With the prospect of Britain leaving the European Union now very real, the pro and anti-EU camps have started to ramp up the rhetoric about the benefits and costs of belonging to the 27-member club. One the one side, many eminent business leaders from Richard Branson to Richard Lambert worry about the cost to the UK economy
Central bankers have had a hard time of it over the past few years. After many were a bit slow off the mark back in 2007 and 2008, when the crisis first broke, we have since seen some imaginative policy responses. These include offering banks secure long-term funding, buying up private sector mortgages, and even acting as the implicit backstop for governments.