Nice summary. I think your key initial point is on target - the disarray in gilt-edged markets was probably less about the new government's policy announcements than the lurking "financial instability" (I hate that term) issues in an environment where rates are increasing rapidly after a long, near-zero period. We hear similar concerns from bond-market pros in the US.
- the reason for the lack of investment is high taxes and red tape. Get rid of high taxes and red tape. Then you get investment
- physical space for that investment will come about because the central bank will respond to the fiscal position by hiking interest rates very much higher - causing less spending. That's the counterbalancing 'tax' - higher mortgage rates and less household formation.
I don't agree with the belief, but that's the premise.
Joseph, this is last minute, but is there any chance you would join as a panelist for a group of about 10-20 on Zoom Monday night at 8 PM New York time? The topic is the inflation outlook, and I am trying to see how the British events play into that. Plus you have other knowledge to contribute. arnoldsk at us dot net
Nice summary. I think your key initial point is on target - the disarray in gilt-edged markets was probably less about the new government's policy announcements than the lurking "financial instability" (I hate that term) issues in an environment where rates are increasing rapidly after a long, near-zero period. We hear similar concerns from bond-market pros in the US.
Thank you!
Fabby job squire.
Are the goals of the tax cuts to stimulate demand, or are they trying to address supply?
The idea is very simple.
- the central bank manages aggregate demand
- the reason for the lack of investment is high taxes and red tape. Get rid of high taxes and red tape. Then you get investment
- physical space for that investment will come about because the central bank will respond to the fiscal position by hiking interest rates very much higher - causing less spending. That's the counterbalancing 'tax' - higher mortgage rates and less household formation.
I don't agree with the belief, but that's the premise.
Joseph, this is last minute, but is there any chance you would join as a panelist for a group of about 10-20 on Zoom Monday night at 8 PM New York time? The topic is the inflation outlook, and I am trying to see how the British events play into that. Plus you have other knowledge to contribute. arnoldsk at us dot net