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Pastimes : The Hot Button Questions:- Money, Banks, & the Economy

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To: maceng2 who wrote (1347)1/30/2011 3:54:53 AM
From: maceng2   of 1417
 
Second, he argues that there "is no compelling evidence of a fundamental shift in the relationship between activity and inflation in the UK". He believes that salary growth has slowed in response to the larger than normal capacity in the labour market.

As a result, he argues that the UK's "low inflation psychology" should survive the current storm intact.


[yeah but can QE create inflationary pressure while wages go down? Sounds like hogwash that helps digest the main course while quaffing expensive wines, but of little substance to those not invited to dinner.]

Mervyn King: The other King's speech
telegraph.co.uk
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