Mr Brown's dilemma
Article Abstract:
The United Kingdom could decide to join European monetary union, which would affect interest rate policy in 1998. The UK would seek to join with sterling at a competitive rate which would mean a lower rate than that of May 1998. A drop in the value of pound sterling is likely to mean a rise in UK inflation rates. An increase in taxes would depress the value of pound sterling and inflation. The government could permit inflation to rise, entry into Emu could be delayed, or interest rates could be set at a level that allowed for higher inflation.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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Why delay can be dangerous
Article Abstract:
There is a danger that a delay in raising United Kingdom interest rates could lead to greater inflationary pressures. Interest rates take some two years to affect inflation, and a consumer boom could push up inflation to an extent that politicians are powerless to tackle it. The Monetary Policy Committee which decides on interest rates may wait until economic growth slows enough for inflation to be subdued. The benefits involved in gaining more information on the economy may be outweighed by the risk of inflation.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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The grim message of the consumer paradox
Article Abstract:
British consumer spending is strong despite high real rates of interest, and the implications of this are examined in detail.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 2001
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