Jean-Claude Trichet spoke at the LSE on Monday afternoon.
Much of what he said was a combination of a couple of speeches he gave last week, the central message being that the eurozone needs to monitor member countries’ fiscal and macroeconomic policies and competitiveness more closely, and that there needs to be a sharper stick with which to beat countries that fail to behave themselves. Read more
The Mafia and the fiscal multiplier – VoxEU
Now for an Arab economic revolution – Project Syndicate Read more
Bank regulators attacked amid push for higher capital - FT
Poor suffer as wealthy Americans pay off debts – FT Read more
The Bank of England’s chief economist has warned that UK inflation could remain high for some time, and called for a rise in interest rates to avoid the risk of cost pressures becoming entrenched.
Spencer Dale, who joined two external members of the monetary policy committee in voting for a rate hike in February, admitted that the Bank had got its forecasts for inflation badly wrong in part because it had massively underestimated how much the weakness of the pound would be passed through to consumers via higher inflation. Instead of a 40 per cent pass through of higher import prices to consumer prices, he said, the UK had seen something closer to a 100 per cent pass through of the price rises. Read more
White collar workers face triple hit – FT
UK economy: in search of shoots – FT Read more
Eurozone price rises sound alarms at ECB – FT
Libya turmoil crushes risk appetite – FT Read more
Banks making it harder and more expensive to borrow is the dominant force in falling lending to households and businesses, according to the Bank of England. The finding contrasts with claims by senior bankers that much weaker lending reflects less demand for credit.
Lending to the non-bank private sector has slowed dramatically during the recession and its aftermath, prompting concerns that a lack of access to credit could hamper the recovery and prolong the downturn in the housing market. Read more