Recession & unemployment

ad44downey

dad-of-4 wrote: »

maybee GB as chancellor failed abysmally in his task of setting a realistic inflation target that could be sustained.

afterall its worked out rather well for him that the BOE carry the can for what used to be his sole responsability, has it not?;)

Fair point. I'm quite happy to see Brown 'sacked' too but I guess we've got to wait for the next election to do that ourselves

posh*spice

ad44downey wrote: »

Fair point. I'm quite happy to see Brown 'sacked' too but I guess we've got to wait for the next election to do that ourselves

Maybe not that long - et tu Brutus

baby_boomer

This is Money

CBI says Britain IS already in a recession & will not recover for at least a year.

"...The business lobby group will also claim an extra 500,000 workers could lose their jobs by the end of next year...."

ess0two

!!!!!!? wrote: »

If interest rates had been set properly in the first place - ie. raised during the runaway boom years - there would be a lot more scope to cut them now.

Because having low rates was considered the be-all and end-all of economic policy even as the economy was booming beyond sustainable levels, we are now paying for that because high inflation means there isn't the latitude to cut them as much as might be desirable to stimulate growth.


Maybe that lesson will be learned next time around.

The joys of after timing

ManAtHome

ess0two wrote: »

The joys of after timing

Not sure what you mean - many of us have been saying rates were too low for a number of years. Of course the bulls and 'powers what be' have been following the 'slasher' greenspan approach which is why inflation has been above target for nearly 3 years now (as BoE always claim to be hitting target in 2 years time, they've been keeping rates too low since 2004....).