The case for cautious optimism on the British economy – Gavyn Davies – FT.com

This is a balanced assessment from leading macro economist, Gavyn Davies, writing in the FT. It’s a STRONGLY RECOMMENDED READ, in my view. Check it out1

via The case for cautious optimism on the British economy – FT.com.

Personally, I still worry about a recovery largely based on loose monetary policy and government guarantees for home loans to new buyers; the latter is inherently inflationary in my view. I am still concerned about the rate of growth in both exports and investment.

Let me turn this to two open questions:

  1. Do you think that there is still a case for the UK Government to intervene to stimulate  exports and investment? If so,
  2. What policy measures should the UK government adopt to seriously stimulate exports and investment?
Sketch map of Whitehall, London, showing the p...

Sketch map of Whitehall, London, showing the position of the major UK Government buildings there (Photo credit: Wikipedia)

Enhanced by Zemanta

5 responses

  1. Pingback: Investment and exports to drive UK recovery – FT.com « Dr Alf's Blog

  2. Pingback: US default by any other name | Gavyn Davies – FT « Dr Alf's Blog

  3. Pingback: Britain should not take its credit status for granted – Kenneth Rogoff – FT.com « Dr Alf's Blog

  4. Pingback: Why world trade growth has lost its mojo | Gavyn Davies – FT « Dr Alf's Blog

  5. Pingback: Never underestimate the Fed’s dovishness | Gavyn Davies – FT « Dr Alf's Blog

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: