Our Economy Is Being Held to Ransom by Deflation Fear
Summary
THE Bank of England has just cut interest rates to 1pc -another 315-year low. The UK's budget deficit is heading for 10pc of GDP and public sector borrowing will soon be at its highest since the war.
Our currency has lost a third of its value in twelve months - pushing up import prices. But inflation isn't a problem. Inflation is yesterday's news.See the full content of this document
Extract
Our Economy Is Being Held to Ransom by Deflation Fear
Politicians and commentators, instead, warn of deflation around every corner. I don't deny deflation is bad. Falling prices warp incentives, increase real debts and - if expected to continue - hammer retail spending. Such proble...
See the full content of this document