Weaker pound is welcome but no panacea – FT.com

English: Keep Calm and Carry On UK government ...

English: Keep Calm and Carry On UK government poster (Photo credit: Wikipedia)

This is an excellent article from Martin Wolfe in the FT. Check it out!

via Weaker pound is welcome but no panacea – FT.com.

Personally, I agree with the article, especially the point that the UK Government has not done enough to promote public investment.

What do you think?

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4 responses

  1. Having said all that, there is one point I would like to pick up – investment. This is obviously a bit simplistic but we saw most investment in the UK during the 19th century and it all came from private money. Government restricted itself to dealing with the legal side of things. So, how about far less regulation, the facility for private investors to find worthwhile projects (like nuclear power stations and roads which will carry tolls) with a new system of enforced compensation for those effected? Then government (at one level or another) could say “fine, you may build that railway but here are the compensation requirements associated with this application” and then stand back and let the entrepreneurs do their stuff. The key is, of course, less regulation.

    • Rodney, I very much agree with less regulation, especially the sort that comes from the EU!

      However, I think that the Private Sector is not taking on commercial risks effectively because the banks are too large & there is too much focus on bankers’ bonuses rather than the needs of the banks’ customers.

  2. One small problem I have is that I do not subscribe to the FT and you cannot read their online articles without a subscription (which is fair enough – as a writer myself I have that strange but totally unreasonable desire to be paid for what I write). However, I am left being horribly tantalised by this blog but unable to know enough about the subject to say anything worthwhile. Alf, Is it possible for you to add a tiny bit more information when you are basing your blog on an FT article?

    • Rodney,

      The article basically endorsed the recent position taken by the Governor of the Bank of England in letting Sterling devalue in relative terms, giving exporters a shot in the arm. However, the article picked up the thread that monetary policy & fiscal policy were not aligned. Basically, it concluded that fiscal policy needed to stimulate investment in the Public Sector.

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