France’s Tobin Tax will make a little but damage a lot August 1, 2012 WHEN Napoleon Bonaparte’s regime executed an aristocrat on trumped-up charges of treason, stirring up bloody memories of the Revolution, his chief of police is said to have remarked that it was “worse than a crime; it was a blunder”. The same could be said of this week’s introduction of a Tobin Tax in France. The [...]
After calls for Boris Johnson to stand for the Tory leadership, could it happen before 2015? August 1, 2012 YES Tim Montgomerie Boris will become Tory leader before the next election if Conservative MPs conclude that they won’t keep their seats with David Cameron still in place. In such a circumstance, they’ll face a choice between almost certain political death and an almighty blonde-headed gamble. There are big practical obstacles to a Boris ascendancy [...]
RAPID RESPONSES August 1, 2012 Sporting nations [Re: Entrepreneurial nations win big in medal tables, yesterday] Stefania Lovo raises some interesting thoughts in her article, but the truth is more complicated. Why, for example, have some large nations not won more medals? The answer is linked to cultural characteristics of each particular nation. Many countries provide winning athletes because they [...]
Libor is fundamentally flawed and threatens London’s global position July 31, 2012 ONE OF the most famous security posters of the Second World War read “Loose Lips Sink Ships”. The idea was to curtail careless talk and prevent giving away information to the enemy. The Libor scandal has featured a different problem: too little careful talk. The basics of the scandal are well-known. The British Bankers’ Association [...]
A champagne prize for the worst Treasury team in modern British history July 31, 2012 AN ENJOYABLE way of spending a few relaxing holiday hours on the beach is to think about the best team that ever played a particular sport. It can be the team as a whole – for example, is the 2012 British Olympic gymnastic team better than its Russian equivalent in 1980? Or you can construct [...]
Entrepreneurial nations win big in medal tables July 31, 2012 IT’S THE question on everyone’s lips. Which country will walk away from London 2012 with the biggest medal haul? Economists are no different from the general public. Several have come up with innovative ways of predicting what it takes for a country to win more medals than its competitors. Goldman Sachs found that national income [...]
As London firms report low visitor numbers, is hope for an Olympic business boost dead? July 31, 2012 YES Nica Burns So London has a big hit – the Olympics. A brilliant show, with a cast of outstanding performers – drama, fulfilled and shattered dreams, laughter and tears. It’s a once in a lifetime and we’re riveted. We’re either going to see the events, or we’re watching them on a screen. We’ve listened [...]
RAPID RESPONSES July 31, 2012 Banking guidance [Re: Our decisive central bank has been neutered by regulatory confusion, yesterday] I agree with Lord Flight and, as a former financial regulator, recognise the limitations of all regulation. Too much is unrealistically expected. It’s an impossible task to protect fools from their own folly. In my view, the FSA has too wide [...]
Our decisive central bank has been neutered by regulatory confusion July 30, 2012 THE TREASURY Select Committee has rightly questioned the arbitrary powers of regulators, particularly the Bank of England, over the boards and senior executives of private firms in the financial sector. Despite the mistakes of our cartelised banks, it’s unwise to assume that regulators can run businesses better than boards. Moreover, trends over the last 12 [...]
Enjoying the Olympics and criticising their cost are two separate debates July 30, 2012 WHEN I was at school, I never really liked sports day. I found the attempts to invent rivalries based on random teams silly, and never found an event at which I excelled. I’d have preferred to be at home. The consolation was that we weren’t in lessons, so I did my best to enjoy the [...]