Tuesday, 13 September 2016

"Despite Brexit fears" weekly round up

On a lighter note, here area few outings for that tired old journalistic cliché from the past week:

City hiring holds up despite banks’ Brexit fears

Kamel Mennour to Open London Gallery Despite Brexit Fears

Experts say Brexit will not cause a recession despite Project Fear scaremongering from Osborne before the EU referendum

How Yorkshire has remained strong despite post-Brexit fears

More than two-thirds of Britain’s smallest firms expect to see growth over next six months despite concerns over Brexit, research finds


SMEs ‘to generate £16 billion a year despite Brexit fears’

London house prices: Fears of dip after Brexit defied as prices continue to rise


And so on, ad infinitum. It would be just as easy to find the same number of headlines reporting poor economic news, which is promptly blamed on Brexit Fears.

Whether the final terms of Brexit will be good or bad for the UK economy - which depends very much on your point of view* - is unknown, but big picture wise it will probably make bugger all difference.

* House prices being a prime example, there are millions of people who would gain enormously if they fell, as opposed to a few hundred thousand who would lose out. But in a Homey society, higher house prices counts as A Good Thing and we have to look at the world through their twisted perspective. Or we could take immigration from poorer European countries; that's good for UK employers and landowners; not so good for low skilled UK workers or the countries they leave.


Jonathan Bagley said...

I'm puzzled by the reaction to the inflation rate: fears of it increasing due to the fall in the pound.
Don't we have a target rate of 2%? Yet there seems to be relief that inflation is stuck at 0.6%. So, is 2% inflation desirable or not, or maybe Brexit induced inflation is the wrong kind of inflation? Can someone explain?

Dinero said...

Yes , its the wrong kind of inflation.
The Bank of England inflation rate you refer to is inflation when it is associated with credit creation, not other price inflating costs such as oil prices or exchange rates. They are trying to influence demand, not costs.

Mark Wadsworth said...

JB good question

D good answer!

Graeme said...

The money supply under various measures has been increasing.... Where is it going?

Mark Wadsworth said...

G, it's going into higher land/house prices and share prices.

Which of course is a core Tory aim anyway, try and reward the hard working home owners, landlords and shareholders and to hell with the lazy buggers who need a job to survive.

Jonathan Bagley said...

Thanks very much Dinero. I'll have a ponder over your reply.