I cannot think of a time when market confidence was plummeting in both the Chancellor or the Governor of the Bank of England at the same time. If neither is up to the job, both should go.
The Prime Minister and Chancellor will have been hoping for a higher rate rise today. Trussonomics requires a tighter monetary policy.
Of course one must not be complacent. I have worked long enough in the markets to know that when they smell blood there can be trouble.
Nobody is talking about a return to the days of politicians setting interest rates, but it must reckon with its mistakes.
Businesses and employees are only responding to monetary conditions set by the Bank of England, where the real responsibility lies.
His Spring Statement was a missed opportunity despite some welcome measures – and further measures may be unveiled during the months ahead.
In a nutshell, the issue is that tightening monetary and fiscal policy at the same time could force the economy to a stuttering halt.
Control the controllables. So provide assistance, ease the pain, reverse the tax hikes, explain why – and focus on a pro-growth strategy.
When it comes to helping working people, a tax cut to hand would be the cancellation of the Health and Social Care Levy.
A Keynesian stimulus was the right response to the Covid-19 crisis. But to keep it up now risks inflation.
Once inflation arises, reversing course is difficult. Businesses shut down or relocate, unemployment soars and we enter an economic contraction.
Government needs to reform the stucture of expert advice, and publish serious analysis of the cost of the options they face.
Theresa May thought aloud about low interest rates. Mark Carney hit back and no more was heard from her. Time for others to do so?
Replying to Alex Morton’s column of a week ago, the ASI’s Senior Fellow argues that the response to the financial crisis was imperfect, but more right than wrong.
If the Government wants to protect our long-term macroeconomic future, this is the correct step to take.