The UK economy: bloodied but not beaten
Article Abstract:
The inflation that has plagued the UK economy is a result of the fast growth that has marked its dynamic economy: of the major industrialized nations, only Japan has experienced a greater rate of growth per capita than the UK from 1981 to 1989. However, the UK is now faced with the imminent threat of a recession, leading many to recommend that the UK join the European Monetary System (EMS), which carries with it a commitment to a stable currency. However, membership in the EMS at the present time would require that the UK adopt an austere fiscal policy that could exacerbate the tendency towards recession. Restricting inflation to the 1.5% to 2.5% rate maintained by West Germany could be detrimental to the prospects for long-term growth by inhibiting needed structural changes in the economy.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1990
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A tale of two deficits - public and trade
Article Abstract:
The UK may experience a deficit in both the current account and the public sector. For several years, the UK has run up trade deficits, but their impact has been offset by the surplus in the Public Sector Borrowing Requirement (PSBR). The PSBR has recorded a 6.5 billion pounds sterling deficit in the first three months of the 1990/91 financial year, while the Budget of the Treasury had forecast a 7 billion pound surplus for 1990. The current account deficit was 9 billion pounds and the trade deficit was 13 billion pounds for the first six months of 1990. Taking into account the current strength of sterling, the current account for 1990 should decline to 17 billion pounds versus 19 billion pounds recorded in 1989.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1990
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The UK current account: time to act
Article Abstract:
The UK current account deficit is around 13 billion pounds sterling in the second half of 1988. The problem is based on excess consumer demand which came to light in 1988 because of the reduction of the oil surplus. The treasury's economic analysts misread the trends when preparing the 1988 budget and predicted a slowing of the economy. The economy did not slow in 1988. The solution is to restrict growth in demand by tougher economic management.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1988
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