The economic recovery is close to flatlining

 Economic recovery appears to have come close to a halt in the major industrialised economies, with falling household and business confidence affecting both world trade and employment, according to new analysis from the OECD. Growth remains strong in most emerging economies, albeit at a more moderate pace.   “Growth is turning out to be much slower than we thought three … Continue reading

Posted by Nigel Tree | Comments Off on The economic recovery is close to flatlining

UK austerity measures “unsustainable” says George Soros

George Soros, the billionaire investor and hedge fund manager, gave his views on the UK’s economic policy at the World Economic Forum in Davos in Switzerland yesterday. He is quoted as saying that although he thought the UK government was right to start making cuts he also thought the plans would have to be modified. He said: “I don’t think … Continue reading

Posted by Nigel Tree | Comments Off on UK austerity measures “unsustainable” says George Soros

“Even worse than we thought.”

This was David Cameron’s take on the UK’s economic situation over the weekend. He said that painful cuts would have to be made which would affect “our whole way of life”. He also added that: “Because the legacy we have been left is so bad, the measures to deal with it will be unavoidably tough …” His argument was that … Continue reading

Posted by Nigel Tree | Comments Off on “Even worse than we thought.”

Government stimulus spending and the multiplier

“Our research shows no evidence of a Keynesian ‘multiplier’ effect.” So, says Harvard professor Robert J.Barrow, who together with Charles J.Redlick, wrote a piece in The Wall Street Journal last Thursday. According to Barrow and Redlick, government stimulus packages are predicated on the view that expenditure multipliers are greater than one. To estimate these potential multiplier values they examined US … Continue reading

Posted by Nigel Tree | Comments Off on Government stimulus spending and the multiplier

G20 is a hit, but Brown’s battleship stays afloat

“This is the day that the world came together to fight back against the global recession, not with words, but with a plan for global recovery and for reform and with a clear timetable for delivery,” was the way Gordon Brown summarised the outcome of the G20 summit in London.   According to the communiqué issued in the name of … Continue reading

Posted by Nigel Tree | Comments Off on G20 is a hit, but Brown’s battleship stays afloat

Put your cheque book away Prime Minister

Yesterday, Mervyn King, Governor of the Bank of England, was answering questions from MPs at a Treasury committee. Just another routine meeting you might think. However, the governor grabbed the headlines by breaking with a convention of the Bank of not discussing the public finances in the open.   He basically warned Gordon Brown against mounting another significant fiscal stimulus … Continue reading

Posted by Nigel Tree | Comments Off on Put your cheque book away Prime Minister

Likely economic impact of Obama’s fiscal stimulus

On Monday of this week the Congressional Budget Office (CBO) responded to a request from the Senate to break down the anticipated effects of the fiscal stimulus of 17 February, which was incorporated into the American Recovery and Reinvestment Act of 2009 (ARRA).   Although the CBO made their forecasts based on the majority view of a number of economists, … Continue reading

Posted by Nigel Tree | Comments Off on Likely economic impact of Obama’s fiscal stimulus