My assessment of the future for the UK economy: Slow growth, more austerity and constitutional uncertainty. Despite the belief that they are better at handling the economy, the Tories will contribute significantly to two of these three elements.
I probably shouldn’t have been but I was fairly shocked by the level of discussion of the immigration issue in last week’s UK leaders debate. Some concrete facts and context here.
Some think the UK economy is doing well but many feel it is doing badly. Some thoughts from a growth accounting perspective.
Lots of people think the euro area’s central banks will be handing back all the interest payments they receive on their QE bonds, providing a nice boost to the taxpayer. They won’t. Grim details here.
With QE purchases starting a few days ago, some thoughts on how QE works with a nice graph to explain.
Some new thoughts on the “can you make losses printing money” theme, this time with a Hans-Werner Sinn angle.
The situation in Greece continues to tick over. An explanation of the ECB’s decision tonight to cut off various Greek assets from its eligible collateral list.
It’s complicated. But it’s got nothing to do with technocratic ECB rules.