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)

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Dr Alf’s Two Cents: The real underpinning for equities | Gavyn Davies

Gavyn Davies, Jim O'Neill, Martin Wolf

Gavyn Davies, Jim O’Neill, Martin Wolf (Photo credit: Financial Times photos)

This is an excellent HIGHLY RECOMMENDED READ from Gavyn Davies the respected macro-economist , writing in his blog published by the FT. Check it out!

via The real underpinning for equities | Gavyn Davies.

What surprised me in this article was the clear evidence that the growth in corporate profits has clearly outstripped aggregate wages and salaries  over the last thirty years. This trend has been linear, consistent and global. In short, this means that the wealthy have done incredibly well but workers have received a much reduced share of the cake.

Any thoughts?

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