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?

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

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