Magazine article Public Finance

Numbers Game

Magazine article Public Finance

Numbers Game

Article excerpt

The UK economy may not have reached 'escape velocity' just yet, but prospects certainly look brighter than they have for many years.

Growth has returned, unemployment is down and inflation is falling. Meanwhile, the new Bank of England governor has all but promised low interest rates for three years, if not more.

Mark Carney told reporters at his first press conference as governor that a 'renewed recovery' was under way.

'The welcome news is that the economy is returning to levels of growth that could begin to be described as approaching historic averages after a long period of very weak performance,' he said.

Carney's policy of'forward guidance' means that the bank will not consider raising interest rates until the jobless figure has fallen to 7% or below. It currently stands at 7.8% and will require the creation of at least 750,000 jobs over three years or more to bring it down to the 7% level.

The growth figures for the second quarter of 2013 provided a good start, with an expansion of 0. …

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