“Playing the fiddle while Rome Burns”


As James Alexander wrote in the previous post, according to the London Times:

The Bank of England has cut its growth forecasts and signalled that interest rates may rise earlier than expected.

Higher savings levels as families grapple with their debts and weaker productivity than the Bank was projecting three months ago weighed on the outlook for the economy, also hitting jobs.

However, the Bank said inflation would overshoot its 2 per cent target within two years, putting an early interest rate rise on the table.

The MPC must be “MWI” (that´s “meeting while intoxicated”) because the story told by the following pictures is a very sad one!

After more than 15 years of great nominal stability (only more recent period shown), the BoE, like the majority of central banks, thought that nominal spending (NGDP) had to be “jerked down”.


For the past two years it has been trying to “jerk-it-down” even more.


No wonder real output growth “acknowledges” the “jerking-down”


And what about inflation? After a spell at zero it is just positive, but the “farsighted jerks” think that in two years’ time it will likely be “2.1%” and so “we have to act shortly”!


2 thoughts on ““Playing the fiddle while Rome Burns”

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.