Inflation, Inflation, Inflation...

cells

westernpromise wrote: »

The BoE sets base rates. It doesn't "manipulate" them.

If the price of sugar or corn or coffee beans was set by 11 men meeting once a month in a room in EC1 would you not call that manipulation?

westernpromise

cells wrote: »

If the price of sugar or corn or coffee beans was set by 11 men meeting once a month in a room in EC1 would you not call that manipulation?

A nation's currency is its own and each nation determines that some body, panel or group of individuals be appointed officially to decide interest rates. This body is legitimised by the imprimatur of sovereign government.

There is no similarity to a globally produced and consumed commodity.

michaels

cells wrote: »

If the price of sugar or corn or coffee beans was set by 11 men meeting once a month in a room in EC1 would you not call that manipulation?

Funny you mention sugar and corn - how much cheaper would these commodities be if we could buy them at world prices rather at the rates determined by the 'free trade area EU''s high import tariffs?!

mwpt

michaels wrote: »

Funny you mention sugar and corn - how much cheaper would these commodities be if we could buy them at world prices rather at the rates determined by the 'free trade area EU''s high import tariffs?!

Funny you mention EU, I don't think we have enough threads about it.

Generali

michaels wrote: »

Funny you mention sugar and corn - how much cheaper would these commodities be if we could buy them at world prices rather at the rates determined by the 'free trade area EU''s high import tariffs?!

Given that you can buy a kilo of branded sugar in the supermarket for 50p give or take and a kilo of frozen corn for a couple of squids it's hard to see what sort of savings you're going to make there.

In Australia, which is not in the EU as I am regularly reminded, the prices of sugar and corn are broadly similar.

michaels

We have Mr Carney talking about inflation today and of course for soem reason ( ) the BBC have suddenly turned very anti inflation just recently.

So I was wondering what sort of inflation profile people would like to see? The BoE target is obviously 2% +/- 1% but it, along with most developed countries worldwide has undershot this target for the last couple of years.

What has driven this? Falling commodity and food prices along with zirp already beign in place and post crash deficits preventing monetary or fiscal easing. This has proved a respite to consumers who have finally seen incomes climb quicker than prices but has also pointed to the ongoing weakness of most global economies where low bond yields at all maturities suggest no confidence that we will see any sort of strong output and profit growth going forward.

Most economists would argue that the low inflation rates in Japan and Europe were a cause for concern rather than celebration.

So is the UK likely to gain economically from the current devaultion and resulting inflation? Bit of a hard one to judge really given the other 'minor' disruptions to the economy taking place at the moment.

HAMISH_MCTAVISH

Just as incomes were finally rising solidly in real terms after the long recession and financial crisis (up 2% above inflation last year) we've gone and shot ourselves in the foot again.

CLAPTON

HAMISH_MCTAVISH wrote: »

Just as incomes were finally rising solidly in real terms after the long recession and financial crisis (up 2% above inflation last year) we've gone and shot ourselves in the foot again.

as you know much of the apparent increase in incomes have been funded by foreign borrowing and selling off our assets (industries, businesses, properties etc) to foreigners.
as you also know the large number of immigrants increase esential imports without making any necessary increase in exports.

we have been shooting ourselves in the foot for a long time : time to get things right.

Conrad

Give me the new flourishing export economy every day, and if that means a bit of inflation(as we always had), so be it. Real enterprise, real jobs, real dignity, not the imbalanced import, slave wage economy that benefits holders of capital at the expense of a rentier majority.


I thought Hamish always said inflation was good for reducing debt?


Just watch now as British supermarkets start switching to more British produce

Conrad

A pattern is emerging. Reports on actual business done keep showing a better business scene than the prior predictive reports painted, mmm;


http://uk.reuters.com/article/uk-britain-advertising-idUKKCN12B2SW


Growth in British companies' advertising spending budgets has hit its highest in more than two years, a survey showed on Wednesday, suggesting that Brexit's impact on the sector might be softer than previously expected.


The IPA Bellwether report, which is researched and published by IHS Markit on behalf ot the Institute of Practitioners in Advertising, said its forecast for advertising spending growth was revised up to 1.9 percent for 2016, compared with its previous forecast of a 0.2 percent decline.
July's report had shown that companies would reduce advertising spending because of uncertainty created by Britain's vote to leave the European Union.