Attacks on fiscal stance are just plain wrong
Article Abstract:
It is quite possible that there will be a consumer boom in the UK in the period to early 1999, but it is equally possible that there will be a substantial economic slowdown in 1998. This means that it is very difficult for the government to set a firm economic policy. The Bank of England's Monetary Policy Committee is sharply divided about the UK's economic prospects, and this means that the risk of policy error is very high. Observers are wrong to claim that economic uncertainty has arisen from fiscal policy having been insufficiently tightened while monetary policy has been tightened too much.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Bank of England has not done enough
Article Abstract:
There are a number of very important reasons why the Bank of England Monetary Policy Committee should give serious consideration to tightening monetary policy. There are no indications that the current rapid growth in the economy is slowing down, and the economy is now running out of spare capacity. Strong consumer demand could keep strong economic growth going until 1998, despite the rise in sterling and the government's strict fiscal policy. The Bank of England should be aware that the economy may not be a strong as it seems.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
What should we do about the soaring pound?
Article Abstract:
The sterling exchange rate has risen by around 10% over the last few months, but the UK government cannot react by tightening fiscal policy in the forthcoming Budget, as this would not be politically acceptable. It is even possible that sterling will rise higher if taxation is reduced in the Budget, which would then prompt a consumer boom and push interest rates up. This would in turn have a negative impact on the export sector, creating further imbalance in the current upward trend.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Morton freezes loan interest payments. Banks face EIB cash call. Eurotunnel to claim 2bn pounds sterling costs
- Abstracts: Major faces mutiny by ministers. Grandees are just dinosaurs, snarls Tory right. Speak of the devil
- Abstracts: Archivist of atrocity who lives to fight for justice. Devastation and despair along the Drina
- Abstracts: Parents fight on after doctor is cleared of killing baby boy. Young, privileged and facing death row
- Abstracts: The extra billions Clarke has up his sleeve. Dear Ken, a quiet work in your ear from four former Chancellors ...