To pay for this crisis, the government must keep in mind Ricardian equivalence March 18, 2020 John Maynard Keynes could certainly craft a neat phrase. In the Second World War, he wrote in his pamphlet How to Pay for the War: “It is only in a free community that the task of government is complicated by the cause of social justice.” The impact of the coronavirus pandemic is similar to a [...]
‘Levelling up’ is as important for London as it is for the rest of the country March 17, 2020 For many years there have been calls to bridge the UK’s stark north-south divide. These have come under many badges, from “rebalancing the economy” to “building a Northern Powerhouse”. Now, “levelling up” is the choice term for a government ambitious to deliver for voters who tore down Labour’s so-called “red wall” in December’s election. It [...]
We should hasten the shift from cash, not try to delay it March 16, 2020 Tucked away far down in the text of the Budget was a commitment that the government would protect access to cash and “ensure that the UK’s cash infrastructure is sustainable”. The fact that the UK could become cashless within a decade has caused alarm among some politicians and pressure groups, who have pointed out that [...]
Economists warn UK low-paid need more support amid coronavirus March 16, 2020 The UK government must do more to support individuals as they deal with the economic fallout from the coronavirus epidemic, leading economists have said. Prime Minister Boris Johnson today announced new government advice for people to avoid “all unnecessary social contact” and for those with any symptoms to stay at home for two weeks. Torsten [...]
IMF ready to lend up to $1 trillion in coronavirus response March 16, 2020 The International Monetary Fund (IMF) is ready to mobilise its $1 trillion (£813bn) of lending capacity to help member countries deal with the impact of coronavirus, the organisation’s managing director Kristalina Georgieva has said. Georgieva also said governments should ramp up spending and increase international coordination to stop the virus from wreaking long-term economic damage. [...]
Andrew Bailey: Bank of England will take ‘prompt action’ over coronavirus if needed March 16, 2020 New Bank of England governor Andrew Bailey has pledged to take more “prompt action” when needed to tackle the economic fallout from coronavirus, raising the prospect of another interest rate cut. Speaking for the first time as governor after replacing Mark Carney today, Bailey emphasised in a BBC interview the “strong coordination among central bank” [...]
Sign of the times: Tinned gin in and fruit pies out of UK inflation basket March 16, 2020 Self-tanning products, gin in a tin, reusable mugs and gluten-free cereals have been added to the basket of goods used to calculate inflation as Brits go eco-friendly and health-conscious. Meanwhile, frozen imported legs of lamb, fruit pies and frozen chicken breasts have been chucked in the bin to better reflect consumers’ changing tastes. The Office [...]
Chinese economy nosedives as virus outbreak hits factories March 16, 2020 China’s factory production slumped to its lowest level on record in the first two months of the year as the coronavirus outbreak wreaked havoc for the world’s second-largest economy. Analysts said the shock was worse than the financial crisis decade ago and reinforced fears that the epidemic may have cut China’s economic growth in half [...]
A levelling up agenda cannot afford to overlook the UK’s beating financial heart March 16, 2020 With the strong and unpredictable economic headwinds of 2020, last week’s Budget came at a critical juncture. All eyes were on the new chancellor, in particular on what the Budget might propose to alleviate some of the short-term Covid-19 shocks to the economy. Efforts to support households and businesses, particularly SMEs, through the Covid-19 outbreak [...]
Andrew Bailey takes over with Bank of England battling coronavirus recession March 16, 2020 Andrew Bailey is no stranger to a tough job. But the incoming Bank of England governor, who takes up his new role as Mark Carney steps down tomorrow, could never have anticipated the size of the challenge that awaits him at Threadneedle Street. Bailey’s time at the Financial Conduct Authority began in the wake of [...]