tag:blogger.com,1999:blog-2546602206734889307.post1183127152939110502..comments2024-03-28T04:29:22.717+00:00Comments on mainly macro: A short guide to why we should not raise UK interest ratesMainly Macrohttp://www.blogger.com/profile/09984575852247982901noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-2546602206734889307.post-8860912523559693882017-11-02T15:04:17.743+00:002017-11-02T15:04:17.743+00:00The most interesting thing about the judgment I wo...The most interesting thing about the judgment I would say is the claim that the UK's potential growth rate is 1.5%, surely that is very low and growth could be faster without adding to inflationary pressures?-https://www.blogger.com/profile/05617000109355910830noreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-90061248392087629622017-11-01T06:50:49.085+00:002017-11-01T06:50:49.085+00:00"The Sun" and the "Daily Mail"..."The Sun" and the "Daily Mail" would be full of leaks if the 58 impact studies---that the Government is refusing to release---showed that Brexit was going to have a positive effect.<br />Will the Brexit negotiations favour the UK by keeping the studies secret? Isn't it likely that the EU has done its own impact studies and knows exactly what is going on?Pendragonhttps://www.blogger.com/profile/14601150248986844828noreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-24583812171395897762017-10-31T12:11:37.759+00:002017-10-31T12:11:37.759+00:00We are still bouncing along the bottom of a depres...We are still bouncing along the bottom of a depression, the only way out is to get this government out and start reconstructing a manufacturing base.<br /><br />Invest in public services and tax the rich until the pips squeak, to quote one of the first monetarist ideologues Dennis Healey.Mervyn Hydehttps://www.blogger.com/profile/10509054505553883594noreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-41436638972583946642017-10-30T23:13:58.224+00:002017-10-30T23:13:58.224+00:00More preaching to the unconvertible, Simon ?More preaching to the unconvertible, Simon ?GrueBleennoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-76371486701571684102017-10-30T14:08:31.700+00:002017-10-30T14:08:31.700+00:00"In particular, both investment and productiv..."In particular, both investment and productivity growth are much lower than the Bank were expecting before Brexit."<br /><br />Bank forecasts can hardly be said to be wrong because of something? The predicted rise in productivity never happens [since GFC]? Sterling has been trashed for nearly 10 years now and the last 10% is so much more significant than prior 20+?bedfonthttps://www.blogger.com/profile/08734407435275515547noreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-45594133260392156992017-10-30T12:33:44.320+00:002017-10-30T12:33:44.320+00:00Probably best to raise interest rates.
You will no...Probably best to raise interest rates.<br />You will notice that the interest if you want a loan from a bank is >> the rate if you want to lend to a bank.<br />Time to bring some normality to proceedings. Like having interest rates > inflation.StuartPhttps://www.blogger.com/profile/13748038209546648459noreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-42595695250046031092017-10-30T11:08:48.631+00:002017-10-30T11:08:48.631+00:00This is a great summary. The only thing I would wi...This is a great summary. The only thing I would wish to add would be the accounts position of major corporations. Perhaps what is also determining their investment behaviour besides demand conditions is the necessity to borrow. If they have a lot of internal funds (they are cash rich) there have little need to borrow. We could have a situation like Japan in the 2000s where banks were hesitant to lend except to a few privileged firms with good credit positions who did not need the cash anyway. <br /><br />NK.<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-57143377676294032552017-10-30T10:32:41.211+00:002017-10-30T10:32:41.211+00:00I think you are wholeheartedly right here but, as ...I think you are wholeheartedly right here but, as you say, it is a view that is contra to the MSM.<br /><br />To me the parallel is 2011 when we had inflation of 5.2% (?) and the bank stood pat. They were right to do so as there was no sign of second round effects on inflation and that the rise would disappear within a year. A rise now would simply exacerbate a situation where, as you rightly say, things are going south; it would be not merely pointless but counterproductive.Robert Joneshttps://www.blogger.com/profile/03593742130088640939noreply@blogger.com