Governments have been using the terms ‘fiscal conservatism’ and ‘austerity’ to bring down government spending. Often it’s meant transferring government commitments (like on education) to private or individual spending (like student loans). Phil Dobbie asks Prof Steve Keen if this a sensible way to encourage growth. If we accept that more spending by government increases the availability of money for people to spend, where do you draw the line? Isn’t there a risk that the government does too much, crowding out the activities of the private sector?
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Markets positive on US data
For once markets have responded to positive data, rather than trade hopes. Plus, NABs Gavin Friend suggests there’s one poll in the UK today you should pay attention to. Plus Aussie capex today, what to expect.
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US deal imminent. UK marooned. Brexit all at sea
The pound will take a hit from the latest lockdowns says NAB’s Rodrigo Catril, but a Brexit deal is still possible. Risk assets are likely to gain on the imminent signing of a US fiscal stimulus.
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Lockdowns set to ease, house prices set to rise
Monday 22nd February 2021
Unless you’ve been hiding in a bunker (as many of us have) you’ll be aware that Boris Johnson will be announcing the schedule for the easing of lockdown measures today. Phil Dobbie says most papers this morning already have it planned out, as the UK’s vaccine rollout programme continues at pace and ahead of schedule. He explains why Israel will be an interesting test case in the next few weeks – they have rolled out vaccines quickly too, but also opened up shops and schools immediately afterwards. Have they moved too soon? But there’s one western democracy where vaccines aren’t entirely welcome. Listen in for more. You’ll also hear property expert Russell Quirk’s views on house prices. He says they are going to rise this year, even though many other experts are forecasting a downturn. With interest rate slower for longer, and the potential for inflation when the economy eventually bounces back, isn’t increased housing demand inevitable?
