It may well take some time for the dust to settle on Kwasi Kwarteng’s first Budget (yes, ‘Budget’: if it looks like a duck, walks like a duck and quacks like a duck, then it’s fair to call it a duck). The initial reaction from most economic commentators and in the financial markets has been … Continue reading ‘Morning after’ reflections on the mini-Budget…
Tag: sterling
What have we learned from the first week of ‘Trussonomics’?
The old saying that a ‘week is a long time in politics’ can rarely have been more apt. The changes in Westminster have been overshadowed by the transition in the Monarchy. But the new Prime Minister has also begun to tackle the challenges facing the UK economy. The first big policy announcement was a freeze … Continue reading What have we learned from the first week of ‘Trussonomics’?
Liz Truss may need to act quickly to reassure the markets – but this won’t be ‘Black Wednesday’
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’
Would more tax cuts be inflationary?
One of the central arguments of Rishi Sunak’s campaign to become the next Prime Minister is that it would be irresponsible to cut taxes further until inflation is under control. Of course, there are risks here, but my view is that they are worth taking. For a start, it is not clear that tax cuts … Continue reading Would more tax cuts be inflationary?
Plain-speaking Economics 