The problems created by the economic depression in Italy are mounting

A week and a day ago the European Central Bank announced further interest-rate cuts and signalled future  purchases of Asset Backed Securities and Covered Bonds in a bid to boost the Euro area economy. At the forefront of the minds … Read More

Posted in Euro zone Crisis, European Central Bank, General Economics, Inflation, Public finances, Quantitative Easing and Extraordinary Monetary Measures | Tagged , , , , , | 12 Comments

What is there not to like about falling commodity and oil prices boosting output and reducing inflation?

The past few weeks have seen something  of a sea change in the way that commodity prices are impacting on our economies. If we look back 2014 opened with some substantial rises as for example the price of basic foodstuffs … Read More

Posted in China, Commodities, Currency, Disinflation, General Economics, Inflation, UK Inflation Prospects and Issues | Tagged , , , | 8 Comments

What can the ECB learn from the Bank of Japan’s QE experience?

Today I intend to take one of my regular trips to the economy of the land of the rising sun which is in the throes of a rather extraordinary economic experiment. Japan is undertaking an extraordinary monetary – and less … Read More

Posted in Euro zone Crisis, European Central Bank, Japan's Economic Situation, Quantitative Easing and Extraordinary Monetary Measures | Tagged , , , , | 17 Comments

The UK Balance of Payments deficit continues on its not very merry way

Today appears to have opened with the UK establishment in full meltdown mode. Indeed they seem also to have plunged us into a Star Trek style wormhole as it sounds as though Gordon Brown is back in charge as Prime … Read More

Posted in General Economics, UK Inflation Prospects and Issues | Tagged , , , , | 18 Comments

The economic impact of Scottish Independence on the rest of the UK

Today has opened with financial markets responding yet again to fears or depending on your position hopes of a Yes vote for Scottish Independence on the 18th of this month. The initial cause was a YouGuv poll published on Sunday … Read More

Posted in Bank of England, General Economics, Inflation, Quantitative Easing and Extraordinary Monetary Measures, UK Inflation Prospects and Issues | Tagged , , , , , | 32 Comments

Negative interest-rates present a trap for the Euro area and the ECB

Yesterday saw Mario Draghi and the European Central Bank take centre stage as new expansionary monetary measures were announced. The opening salvo is shown below. The interest rate on the main refinancing operations of the Eurosystem will be decreased by … Read More

Posted in Euro zone Crisis, European Central Bank, Forward Guidance, General Economics, Inflation, Quantitative Easing and Extraordinary Monetary Measures | Tagged , , , , , | 22 Comments

Where do the upwards revisions to UK GDP leave the “output gap” and “labour market slack”?

Today the Bank of England Monetary Policy Committee meets to make its latest decisions and deliberations on UK monetary policy. It may even spend a little time discussing how its policy might change if later this month it becomes responsible … Read More

Posted in Bank of England, Forward Guidance, General Economics, Quantitative Easing and Extraordinary Monetary Measures, UK Inflation Prospects and Issues | Tagged , , , , , | 15 Comments

What will Scottish monetary policy be in a post Independence world?

Yesterday saw a clear change in the way that financial markets are responding to the possibility of Scotland voting yes to Independence on September 18th. There were several factors in this which include the fact that the date itself is … Read More

Posted in Currency, GDP, General Economics, Inflation, Quantitative Easing and Extraordinary Monetary Measures, UK Inflation Prospects and Issues | Tagged , , , , , , | 34 Comments

What does the transfer window just gone tell us about the economics of England’s Premier League?

Last night at 11pm British Summer Time the latest transfer window for the UK football premiership closed. I would say slammed shut but in fact some deals  such as the move of the England international Danny Welbeck to Arsenal had … Read More

Posted in General Economics, Inflation, UK Inflation Prospects and Issues, Uncategorized | Tagged , , , | 6 Comments

UK monetary policy is expansionary for banks and housing but what about exporters?

On Friday I took a look at the UK housing market and today I wish to look at an associated area which is UK monetary policy. The underlying state of play has been expansionary for quite some time as we … Read More

Posted in Bank of England, General Economics, Gilts, Quantitative Easing and Extraordinary Monetary Measures, UK Inflation Prospects and Issues | Tagged , , , , , | 15 Comments
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