Gordon Brown as the UK Chancellor of the Exchequer (Treasurer or Finance Minister) had a 'Golden Rule'. Balance the budget of current expenditure over the economic cycle. That is he, like all sensible governments, separate the current and capital components of the government budget.
The article below says 'maybe this is a good idea?' Well while it is rather late this is a welcome contribution to the public debate.
It is not bad to borrow to invest!
Sunday, 25 September 2016
Thursday, 8 September 2016
Monetary policy in the Euro Area
Like many countries around the world the interest rate is at a record low. The European Central Bank (ECB) has kept its rate at 0% this month.
The Euro Area economy is growing slowly and inflation is so low that deflation is a real possibility. The response of the ECB has been to 'print' 1 trillion Euros of money and lower interest rates to encourage spending.
The ECB has been slower than most to act, partly because it has a 25 member committee that finds it difficult to agree. They may have acted far too late, or they may just feel that with rates so low and confidence so weak that monetary policy is ineffective.
There are lots of good stories like this around the world that will make good IA's.
The Euro Area economy is growing slowly and inflation is so low that deflation is a real possibility. The response of the ECB has been to 'print' 1 trillion Euros of money and lower interest rates to encourage spending.
The ECB has been slower than most to act, partly because it has a 25 member committee that finds it difficult to agree. They may have acted far too late, or they may just feel that with rates so low and confidence so weak that monetary policy is ineffective.
There are lots of good stories like this around the world that will make good IA's.
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