It's not all doom and gloom

How refreshing to see the boss of a major corporation demonstrate that he is willing to swim against the tide The revelation that Labour is loosening the fiscal rules, a funda mental tenet of Brownomics, has been greeted with "end of prud ence" type headlines or as another nail in new Labour's coffin. There appears to be a collective determination in the media (of which I am part) and among the chattering classes to talk us into a deep funk. Actually, the Treasury decision to kick away the traces of the fiscal rules could be exactly what is needed in the present doleful economic circumstances. Having ceded control of interest rates to the Bank of England, the government has no monetary means of easing the economic position of ordinary households. It can, however, inject more money into the economy using budgetary policy. It... [read full story]