Speaking of fiscal stimulus, British finance minister Rishi Sunak is expected to announce measures to counter the jump in unemployment. Aside from spending 3 billion pounds to improve energy efficiency, he could announce VAT cuts, lower property purchases taxes and vouchers to aid hospitality businesses. The pound is holding near three-week highs before his speech. … [Read more...] about Daily Briefing: Asking for more stimulus?
Uk trade deficit with germany
Blanchflower had outlined his reasoning in the spring of 2008, when he said the UK was following the US through four stages of descent into recession. "First the housing market weakens, then consumer confidence collapses, then the labour market falls, then output drops. In the UK by the spring of 2008 we had gone through three of the four steps. Mervyn was sure the UK had de-coupled from the US and was more worried by the risk of exploding wage pressure. The high quality US economists I was speaking to were telling me that the world was coming to and end. … [Read more...] about Lehman Brothers collapse: five years on, we’re still feeling the shockwaves
Support for the idea of a debt conference has also come from some surprising sources. German public opinion is generally viewed as opposed in principle to any more help for the Greeks. But Hans-Werner Sinn, president of the Ifo institute in Munich, one of the country’s key economic thinktanks, last week became one of the most prominent German voices arguing for an international summit to agree a debt write-off, from the pragmatic point of view that Germany is unlikely to get its money back anyway. … [Read more...] about A new idea steals across Europe – should Greece’s debt be forgiven?
Oh the drama. But Cyprus pulled back from the abyss. A deal was done. Its second biggest bank would close. Heavy losses for those with over €100,000 in the banks; capital controls for everyone. One euro was no longer the same across the region. If it was a ‘Cyprus euro’, you might not be allowed to get your hands on it. … [Read more...] about Europe in turmoil: five years of economic crisis