Bank of England – Rising Disposable Incomes Create Babies

The Bank of England is reporting that lower interest rates raise the prices of things bought with borrowed money. Well, thanks for that, would never have thought it. But then they go on to be a bit more subtle, lower interest rates create babies:

Researchers at the UK’s central bank set out to investigate whether its policy and mortgage rates can impact couples’ decisions on whether or not to have children.

They found that cutting interest rates appeared to stimulate more than just the economy, with an extra 14,500 babies born in 2009 after it slashed borrowing costs during the global financial crisis.

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Bank Of England – Brexit Financial Risks Are To European Firms

Think on matters just for a moment. Who is at risk from a no deal Brexit cutting The City off from the European markets? The firms in The City of the customers in the markets?

Say that all food shops closed for 90 days starting tomorrow. Who has the problem? Sure the food suppliers are more than a bit pissed about it but who has the actual problem? The people who can’t eat for 90 days, obviously enough.…

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If Zero Carbon By 2050 Has No Costs Then There Are No Opportunity Costs

Slightly sad, Ambrose Evans Pritchard has gone off the deep end here. For he’s claiming that the UK going zero carbon by 2050 has no costs associated with it. The glory of lots of investment in all things Green will produce economic growth – which it might indeed, investment can do that – and therefore there’s no cost to us all of such a change in how we power our society.

This is of course tosh, utter colei*.…

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Two Absurd Claims About Lending And The Great Crash

The Observer’s business editorial really outdoes itself today with two fallacious claims about bank lending and recessions, crashes and even the Great Crash. It manages to make the opposite statement to the one they normally complain about and then also get the cause of and reason for that Crash wrong.

They wanted companies to borrow and grow, but not like this. Last week, this concern was visible in the minutes of Bank of England’s financial policy committee.

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Oh Aye, Bank Of England Should Freeze House Prices For 5 Years, Should It?

We’ve another one of these lovely ideas from IPPR, the Institute for Public Policy Research. As with all of their suggestions it manages to spot a useful nub of an idea and then completely blow it by not understanding how economies work. They think that a period without house price inflation would be a pretty good idea. They’re right, it would. To do this they suggest that the Bank of England shout be given all the powers that we stripped it of some decades ago.…

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The European Union Needs To Be Worried About Losing Access To The City Of London

This isn’t exactly and precisely what the Bank of England says here but it is precisely and exactly what the Bank of England means. All this shouting over Brexit, The City, passporting for finance firms and so on. The real question here is, well, what is remnant European Union – or more specifically, all the companies and people in it – going to do when cut off from their major supplier of wholesale financial services?

That is, “Nice economy you’ve got there, shame if something happens to it, isn’t it?”…

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