MOOTICITY

Should the UK government deliver another economic support package ? Tuesday's data release of Public sector finances for the financial year ending in March 2022 revealed that borrowing has halved compared to a year ago. The difference between how much the government spent vs. how much they received was £151.8bn in March this year compared to £317.6bn in the same month last year. This comes as the majority of the government's Covid economic response programs were largely phased out by autumn last year where two-thirds of the £169bn total expenditure on support schemes was expected to take place (1).  As pressure mounts on the government to take provide financial support as living costs rise the majority of economists are confident in saying the government is in good standing to commit to further spending. Bethany Beckett, a UK Economist at Capital Economics commented that " there was likely to be a further fall in the deficit to around £100bn in 2022-23. As a result, the ...

  Inflation - Will it persist as a result of demographic changes? Disclaimer- The below is taken from today's Washington Post article written by Tom Fairless .  This morning on the Washington Post I read an article on the findings of British Economist Charles Goodhart in his book 'The Great Demographic Reversal: Ageing Societies, Waning Inequality, and an Inflation Revival' published in 2020. Prior to publishing this book, some of Goodhart's accolades include working in the central bank under the Thatcher era and proving the link between money supply and inflation to be unreliable, leading to them being later abandoned in future money-supply models used by the central bank. He also helped former British colony, Hong Kong, peg their currency to the U.S. dollar which brought an end to their currency crisis and has remained in place for nearly four decades.  The headline forecast being put forward by Goodhart is "inflation in advanced economies will settle at 3% to 4...