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We're on Course - if the Eurozone gets resolved
Posted By: Peter Evans
Date Posted: 15/10/2011
The economic problems facing Britain today are unique. There is no precedent to follow. However, every country affected is putting its own interests first - as might be expected. We cannot rely on China, for example, changing its strategy - China can manage in isolation if necessary, it has every raw material available in its own lands.
QE can help the UK climb through a rough period but will appear ineffective against a failure by the Eurozone to sort out its economic mess.
The G20 Summit gives us hope that a workable strategy will emerge. The enormity of the task cannot be stressed strongly enough.
While Britain is better placed to ride out the storm if a solution is found and implemented effectively (even compared to the USA) there will be no escaping the inflation spiral that will always follow a recession. It is a fact of life which no country can prevent because trading is an international business.
There is an interesting correlation between Government expenditure vs private: this is that inflation rises faster the greater the Government proportion of the spend to escape from a recession.
The UK example shows that there is an understanding of this phenomenon which, if the Eurozone problem is sorted, we will witness.
More Entries By Peter Evans
- Moody's analysis for the economy is cautious Date posted: 14/02/2012
- Why the economy will be rough for a while longer Date posted: 11/11/2011
- Managing our Economy NOW Date posted: 26/09/2011
- The Cost of the Riots etc. Date posted: 10/08/2011
- What follows the USA debt crisis now? Date posted: 01/08/2011
- No need to panic over the USA debt crisis Date posted: 28/07/2011
- Good Economic News for Everyone Date posted: 26/07/2011
- Helping the UK recovery Date posted: 19/07/2011
- Sensible approach to regeneration is needed Date posted: 05/05/2009
- Toxins threaten us all Date posted: 31/01/2009
- Pay and Grading Truth Date posted: 29/01/2009
