The Inflation Enigma

WEEKLY COMMENT 12-10-2017

By Barry Edwards

The Inflation Enigma

 

There has been a lot of discussion recently by economists and commentators about inflation and why it is not reacting as the current economic models predict. As the IMF gather in Washington for their annual meeting, this subject has become the main topic for finance ministers and central bankers who usually attend this event. The economic theory that has been the basis for managing an economy is about 30 years old and since the financial crisis in 2007/8 it has not performed according to the model making it difficult to predict how an economy will react in the next year or so. read more

Alternative Party Policies

WEEKLY COMMENT 5-10-2017

By Barry Edwards

Alternative Party Policies

The party political conferences finished this week with the Conservatives setting out their agenda for the country which was not especially exciting. The main themes for all the parties seem to be infrastructure investment, tuition fees, social housing and social care with the proposal to nationalise all utilities from Labour. All of them claim that their policies are fully costed within the national budget and the nationalisation will be funded by issuing government bonds. Most commentators were unimpressed and believe that the funding will not materialise from tax revenue leaving most of the policies unimplemented or possibly only partially achieved. read more