http://news.bbc.co.uk/1/hi/business/7789311.stm
The Great British shopper - resilient as ever
I am starting to get the impression that all the stimulus being given to both the US and UK economies is overdone and motivated by fear of not doing the right things with the threat of depression looming. Bernanke is obsessed with the Great Depression and no doubt has influenced his Brirish counterparts.
And with the pound falling, as a net importer, prices of imported goods must go up.
Lastly for cultural reasons, Brits are incapable of holding off spending for long (unlike the Japanese or Germans for example).
For these reasons I think in the UK we WILL NOT have long term deflation as all the expert commentators are suggesting, but after a sharp fall in inflation (and maybe deflation for a short spell) , inflation will rise hugely.
The Great British shopper - resilient as ever
I am starting to get the impression that all the stimulus being given to both the US and UK economies is overdone and motivated by fear of not doing the right things with the threat of depression looming. Bernanke is obsessed with the Great Depression and no doubt has influenced his Brirish counterparts.
And with the pound falling, as a net importer, prices of imported goods must go up.
Lastly for cultural reasons, Brits are incapable of holding off spending for long (unlike the Japanese or Germans for example).
For these reasons I think in the UK we WILL NOT have long term deflation as all the expert commentators are suggesting, but after a sharp fall in inflation (and maybe deflation for a short spell) , inflation will rise hugely.
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