What we have been reading recently:
ASI - More gloominess. I like this now I have decided,not that I agree with it, but good for getting the zeitgeist.
FT Alphaville - It is not just Greece that is in trouble.
Tim Worstall - Excellent article on the Gender gap.
Slack Belly- A betting yarn.
Wat Tyler - On how the NHS cannot escape reality.
4 comments:
What do you mean ASI is good for getting the zeitgeist?
I thought modern economics was dominated by Keynesians? which ASI very much opposes.
Anon - For the zeitgesit of impending doubel dip - of which I am less sure.
oh.
Well i thought that post was suggesting we were creating the malinvestment for a future recession.
I didn't get a time-line from it, whether they ment double dip now, or another recession in a few years.
I personally think there is sure to be a 'double-dip' which I wouldn't called a double dip simply the same recession as before which we have temporarily halted due to government borrowing and spending and ultra low interest rates.
If you don't think there will be a 'double-dip', do you believe property prices can remain at their current level when interest rates go up?
and if not (as i assume) how long do you think it will be before interest rates go up?
Surely they can't remain in what is effectively negative interest-rates, significantly lower than inflation for very long?
Anon - I want interest rates up and more QE. House prices remain high but there are lots of factors that are going to keep them at nominal values kind of where they are.
I think we need rate rises to normalise the economy and so would do this with QE to stop velocity collapsing. Also QE to buy corporate bonds etc not just gilts to bail out the Government.
What I want and what will happen are very different. I see a cowed Bank of england keeping rates low for ages. Now is a good time to borrow!
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