This was not written by an economist

Nor can we presume that the impact will be limited or short lived. There is little prospect of either being true: no one can turn round and say Brexit was all just a bad dream and this will go away: that is not going to happen. So the pressure in the pound will continue; the lack of investment will continue; the outflow of funds will continue; the concern about the UK’s trade balance will continue and so too will the lack of confidce in the UK’s negotiating position continue.

The hard impacts of Brexit will be apparent to people well before Christmas, and as a result long before Article 50 is triggered.

What can be done about it?

The worst thing would be that interest rates are also increased to counter the inflationary trend: this would impose a second burden on just managing UK households.

The best thing would be the creation of UK employment opportunities with a deliberate focus on pushing up UK wage rates: a Green New Deal has by far the best chance of doing that by creating local jobs in every UK constituency.

A third option would be to cut VAT for a year whilst the inflation works through the system.

We should deal with inflation caused by monetary stimulus by increasing the fiscal stimulus of the economy either through more spending or less taxation to create more inflation?

Err, what?

For fun have a look back and see if you can find where he says that the Green New Deal will produce inflation which is just what we want these days. now that we’re getting inflation the GND is the solution to inflation.

Sheesh.

4 thoughts on “This was not written by an economist”

  1. The elephant in the room is why no one has suggested increasing the base rate. I know that would make Carney faint – his remit seems to be to hit pensioners and the pension funds hard at all costs, whenever possible. But surely, there is scope for a policy more enlightened than could be devised by a twat like Ossy?

  2. The LHTD fails to appreciate that a reduction in immigration from RU countries whose median wage is less than the UK’s JSA will push up UK wage rates.
    I should be tempted to mention that on TRUK but I have been banned because I am boring. Anyone with a good pseudonym like to try?

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