Monthly Archives: February 2013

Real interest rates already are negative

Today it was announced that the Deputy Governor of the Bank of England was considering lowering the base rate further still, beyond the current 0.5% into negative terrority. Quite how this is supposed to solve our economic problems isn’t clear. … Continue reading

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More on interest rates

On similar themes to my recent post on interest rates, Detlev Schlicter has written more on the topic. He explains that interest rates are key to co-ordinating consumption and investment: One of the important challenges of coordination for any economy … Continue reading

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Quote of the Day

 If a ten pound note had shrunk over my lifetime in line with its purchasing power, I would need a magnifying glass to find it in my wallet. Simon Rose, Save our Savers

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Tautology and the bank

One of the major works of departing Bank of England Governor Mervyn King was the Inflation Report – a quarterly report on what inflation is and what caused it. It is here that economists earn their stereotype for obfuscation, blaming inflation … Continue reading

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Time and money

Interest rates around the world are today set by central banks, by committee. Is this the best way to do it? This depends on what interest rates are. Are they variables we can tinker with to provide the best economic output? … Continue reading

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Argentina imposes supermarket price controls

The Argentine government is clearly getting worried about the effects of the constant money printing on everyday purchases: Today, in a futile attempt to halt inflation, the government of Cristina Kirchner announced a two-month price freeze on supermarket products. The … Continue reading

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Should we end the Fed?

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