Deficit cuts should take priority.

Financial News, a Dow Jones Company., 21st February 2011 UK inflation is running at double the Bank of England’s 2% target and is expected to rise further, some say to 5%. But the economy is far from booming. GDP fell in the fourth quarter of 2010 by 0.5%,...

Tug-of-war over equity ratios.

Financial World, 1st February 2011 Companies’ balance sheets matter to their management, employees, shareholders and creditors. Bank balance sheets are vital for the whole economy. Creditors want strong balance sheets and management and shareholders want weak ones....

We cannot support ever-rising debt.

The Times – Economic Opinion, 29th December 2010 Most macro-economic theories had egg all over them when the financial crisis broke. Only a few economists, among whom I am naturally proud to be included, warned of the looming problems. The signs of trouble lay...

Japan’s Population.

Nikkei Veritas – Market Eye column, 20th December 2010 In modern times, Japan is the first major country to experience a falling population, though it is likely to be followed by others. For example, Germany’s population is expected to start falling in about ten...

Higher equity ratios unlikely to impact on banks.

Financial Times (Letters), 30th November 2010 Sir, Data published by the Bank of England show that UK banks had, for many years, a return on equity which was similar to that on other industries, but which more recently has averaged about three times as much. The rise...