The Bank of England’s forecasts suggest that, were it not for inflation, it should maintain the large stimulus it is providing to the UK economy or take it even further, according to Martin Weale, a member of the monetary policy committee.

The Bank’s projections for the economy point to a substantial amount of slack remaining even at the end of the forecast period in three years, Mr Weale said in a speech on Monday, suggesting that current loose monetary policy or a further boost would be necessary. 

In Ireland, dangers still loom – Economix

Why America isn’t working – Ken Rogoff 

Tax receipts ease UK borrowing – FT

Upward mobility and falling budgets mix badly – Paul Gregg, FT 

Cutbacks hit business confidence – FT

Beijing doubles holdings of S Korean treasuries – FT 

Is it the gunfight at the OK Corall? Or Ali vs Fraser? Or perhaps King Kong against Godzilla? Choose your own inappropriate metaphor, but today’s letters from more than 60 economists to the FT arguing strongly against major action to cut the deficit this year has clearly touched a nerve in what is perhaps the biggest issue facing the UK economically and politically for the next few years.

Following the letter by 20 economists to the Sunday Times at the weekend, today’s letters highlight the division in the economics profession between fiscal hawks and those who are more worried about the economy’s ability to restart after one of the deepest recessions of modern times.