Monetary dark age
[Re: The real world looks much less rosy than the Bank of England’s forecasts, yesterday]
This is a dark age for macroeconomics. The likes of Mark Carney are concerned with communication but have forgotten that the maximum impact of an interest rate increase occurs within 12-18 months. If this is appreciated, then the Bank is saying that, with unemployment declining at a rate of 1 percentage point a year, it can continue with ultra loose monetary policy until late 2016 (with the actual hike in spring 2015). This is borderline crazy as, at the current trajectory, unemployment in late 2016 will be less than 5 per cent.
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France must be in really bad shape if it can’t even match Russia for economic growth.
ONS: 11 per cent of households own second homes/buy to let. That’s about 7m people.
Why do they call them “free” school meals. I’m pretty sure our taxes paid for them.
New MPC member Kristin Forbes has worked on macroprudential regulation. Should come in handy.