On Friday, I spoke against monetary activism once again, complaining about the use of expectation management and new monetary instruments in an attempt to defibrillate the economy. It’s a mistake, not least because a failure to contain inflationary expectations could be catastrophic, as I set out last year. Mark Carney […]
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The Bank of England is considering negative interest rates to “stimulate” the economy, together with more QE. It’s one thing to pay a bank for safe-keeping and other services, another for the central bank to manipulate the credit markets as a whole. It is explicitly a policy of expropriating savers, […]
Read MoreYesterday, we learned “public sector net borrowing was £0.6 billion in July 2012; this is £3.4 billion higher net borrowing than in July 2011, when net borrowing was -£2.8 billion (a repayment)”. Compared to say May, when we borrowed £17.9 billion, £600 million seems relatively modest. It’s still the gross […]
Read MoreVia the Telegraph: The Office for National Statistics said its consumer prices index (CPI) measure of inflation rose to 2.6pc in July from 2.4pc in June, driven by a 21.7pc rise in the cost of flights which saw overall transport prices rise by 1pc. And via ToryOutcast: “UK inflation jumps unexpectedly in […]
Read MoreSaveOurSavers are celebrating 15 years of the Monetary Policy Committee with the following video. It’s rather too harsh on the Governor: effective central planning of the price of money is just as impossible as the planning of other prices and surely more counterproductive. That is, the Monetary Policy Committee are […]
Read MoreThe Bank of England’s latest Inflation Report forecasts falling inflation: However, my preferred measure of the money supply, MA from Kaleidic Economics, is now rising at 6% year on year, in contrast to the Bank’s measures of broad money: There are other factors at work too but there’s a certain […]
Read MoreA so-called “mansion tax” may appear to embody a particular notion of fairness. One would think from the rhetoric that high-value homes all belonged to wicked billionaires, oligarchs and non-doms. One would think that owning such a home were inherently unjust. Far from it. Many valuable homes will have been bought […]
Read MoreThis evening, I made the following presentation on the Government’s financial position and intentions and on the genesis of this crisis. The PDF is here: How to create a crisis.
Read MoreVia “Merle Hazard”: I’m reminded of economist James Buchanan’s words: The market will not work effectively with monetary anarchy. Politicization is not an effective alternative. We must commence meaningful dialogue with acceptance of these elementary verities. Far too much has been said and written in elaboration of the first statement, […]
Read MoreThe economic facts behind the Autumn Statement, in as far as they are known or forecast, are available in the Economic and Fiscal Outlook from the Office for Budget Responsibility. Table 4.7 provides forecast current receipts. Table 4.18 provides total managed expenditure. So, here’s a chart of current receipts (i.e. tax) […]
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