1. Exquisite Tweets from @CJFDillow, @sjwrenlewis, @Frances_Coppola, @AnnPettifor, @ftopinion

    PreoccupationsCollected by Preoccupations

    BOE raises rates because a "diminished rate of supply growth" could be inflationary: bankofengland.co.uk/monetary-polic… Why growth has diminished is a very political question. A few candidates (which are not mutually exclusive) include:

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    CJFDillow

    Chris Dillow

    the legacy of the financial crisis, eg in depressing animal spirits & hence innovation ideas.repec.org/p/car/carecp/1…

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    CJFDillow

    Chris Dillow

    Or austerity, which has caused an innovations gap mainlymacro.blogspot.com/2017/05/undere… (Verdoorn's law say productivity depends on demand growth)

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    CJFDillow

    Chris Dillow

    Or neoliberalism, via several routes - financial deregulation contributed to the crisis, slack labour markets, deterred labour-saving innovations, or top-down management itself harms productivity stumblingandmumbling.typepad.com/stumbling_and_…

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    CJFDillow

    Chris Dillow

    Whatever the answer, whilst a "diminished rate of supply growth" might be exogenous for the BoE, it's not (unless you put a lot of weight on Gordon's argument voxeu.org/article/us-eco…) necessarily exogenous to capitalism or to government

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    CJFDillow

    Chris Dillow

  2. Brexit uncertainty has reduced investment and productivity growth. If Brexit uncertainty ends in 6 months, odd time to raise rates.

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    sjwrenlewis

    simon wren-lewis

  3. Yes. Given the stability of wage & price inflation, I don't see any urgent need to act now, rather than wait.

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    CJFDillow

    Chris Dillow

  4. Oh come on. Inflation is closer to target now than it was last autumn. Pay is only slightly above inflation after being flat for ten years. And 1.5% growth is a depressingly low "speed limit". Unconvinced, frankly.

    Bank of England @
    Find out why we have raised interest rates to 0.75%. Our visual summary tells you why in a nutshell: b-o-e.uk/2vtJgXQ #InflationReport

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    Frances_Coppola

    (((Furious Coppola))) 🤬🤬🤬🤬🤬

  5. Today's MPC decision on interest rates is an example of the problems with making inflation the primary target rather than growth: mainlymacro.blogspot.com/2018/06/a-new-… The Bank should be focused on creating the right environment for investment + productivity growth when Brexit uncertainty ends

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    sjwrenlewis

    simon wren-lewis

  6. This is what is wrong about the Bank of England's rate hike. By me, for Progressive Economy Forum. progressiveeconomyforum.com/2018/08/02/wha…

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    AnnPettifor

    Ann Pettifor

  7. FT View: A false step by the Bank of England on.ft.com/2KlAmRr

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    ftopinion

    FT Opinion