The financial markets are nervous. Investors are demanding a higher yield for holding UK government bonds (‘gilts’) and the pound has continued to slide against the US dollar. It is still too soon to talk of a ‘sterling crisis’. Nonetheless, the heightened political uncertainty and large current account deficit could make UK assets particularly vulnerable … Continue reading Liz Truss may need to act quickly to reassure the markets – but this won’t be ‘Black Wednesday’
Tag: sterling crisis
Is ‘Brexit Britain’ really the ‘sick man of Europe’?
If you believe some of the headlines, the global economic shocks are already hitting ‘Brexit Britain’ much harder than other countries. Even the Bank of England governor, Andrew Bailey, has warned that inflation is set to be higher for longer in the UK, and growth weaker. The IMF, OECD and currency traders all apparently agree, … Continue reading Is ‘Brexit Britain’ really the ‘sick man of Europe’?
No, this still isn’t a ‘sterling crisis’
The recent slide in the pound against both the dollar and euro has prompted talk of ‘meltdown’ and ‘free fall’. Some commentators have already called this a ‘sterling crisis’, and speculated about what Tory politicians would be saying if it were happening under a Labour government. Even the normally sensible Conservative MP, Sam Gyimah, has described … Continue reading No, this still isn’t a ‘sterling crisis’
Plain-speaking Economics 