As the campaign to become the leader of the Conservative party and therefore Prime Minister of the UK is whittled down to the final two candidates, the economy continues to struggle. It has shown paltry growth since the crisis of 2007/8, mainly down to poor productivity. ‘Levelling up’, Brexit, none of these has changed that …
Why price inflation will remain low even with record debt
UK government debt is running at £400 billion a year or 20% of GDP. Money supply growth is rising by nearly 14% per annum and the ratio of outstanding debt GDP – 85% of the economy just last year – is set to be around 108% of GDP in the 2020/2021 financial year. Surely that’s …
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Capital markets are increasingly unmoored from the real economy
Imbalances in the financial sector or the real economy – the usual trigger for recessions – have been markedly absent from the current global economic downturn. Instead, the cause this time was a government-mandated shutdown of the economy owing to a global health crisis. The end of shutdown will see economic growth resume (as indeed …
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