Sterling fell today as it was revealed that the government was forced to borrow last month as tax receipts fell sharply.
Net borrowing was more than £9bn higher in January than a year earlier, as the government faced a deficit of £4.3bn compared with a £5.3bn surplus in January 2009. January is a crucial month for taxation, and this is the first year to record a deficit in the month since at least 1993. Read more
Just another day of deflation in Japan – Money Supply
Sarkozy’s back to the future currency plan – FT Read more
Banks should hang on to their cash, rather than handing it out to employees and shareholders: then they might be in better shape to withstand troubled times. So Andrew Haldane, Bank of England MPC member, said this evening.
“If a positive profit surprise comes along, this windfall should be pocketed, front-loading the path to higher capital without harming lending and growth,” Mr Haldane said. Had there been more of this ‘prudential opportunism’, we might have been better sheltered from the crisis. He added that he saw no evidence banks were following this path. Read more
Today, Bank of England figures show that, by its own yardstick, quantitative easing is falling short. In the Bank’s bluffers’ guide to QE, the goal of the policy, which creates money to buy assets, was described as “the degree to which the cash injection boosts the growth of money and spending by households and businesses.”
But the measure of the money supply that the MPC has pointed to in the past fell at 5.3 per cent annualised in the three months to October. Read more
Money Supply, a Financial Times blog, rounds up the top economic headlines for Monday, October 19 Read more
Money Supply, a Financial Times blog, rounds up the news for Monday, October 19 Read more
Minutes show Fed cautious on growth – FT
Obama calls for 57m to get $250 cheques – FT Read more
Money Supply, a Financial Times blog, wraps up the news of the day for Thursday, October 15 Read more
The economic headlines for the afternoon of October 12 on Money Supply, a Financial Times blog Read more
Daniel Pimlott of the Financial Times reviews the day’s economic news Read more