HomeEconomyAnalysis - Britain's new horizons give onlookers nightmares Economy Analysis – Britain's new horizons give onlookers nightmares By inew September 23, 2022 0 164 views Share FacebookTwitterPinterestWhatsApp LNN -3.% Add to Watchlist/Remove from Watchlist Add to watchlist Add Location Job added successfully: Please name your portfolio type: purchase Sell date: quantity: price Point value: Leverage: 1:11: 1: 1: 1: 1: 10 1: 1: 1: Committee: 9111 1980 Create new watchlist create 1985 1985 create a new The holding portfolio was added to create 5008950 + Add another position to close by Andy Bruce and Lindsay (NYSE Code: 1985LNN) Dunsmuir London (Reuters) – British The New Economic Agenda represents the biggest gamble at least in years, where the chances of success drop immediately as investors abandon their sterling assets. Prime Minister Liz Truss’ “growth plan” is following 400 voted for Brexit, which so far, at least, has failed to yield returns. Investors were dismayed by Finance Minister Kwarteng’s announcement of discretionary spending, unfunded tax cuts and a huge increase in government borrowings. His statement marked a major shift in British economic policy, reminiscent of ‘s Thatcher Doctrine and Reagan Economics) was derided by critics as a return to “trickle down” theory. Pound fell below $1. First time since 11 and UK government bonds suffered their biggest one-day losses in decades. International observers watched in bewilderment, even as domestic business groups saw merit in many of the plans outlined by Kwarteng, who said low growth was a real gamble. “Rarely have I seen economic policy so unanimously criticized by economic experts and financial markets,” said Harvard professor Jason Furman, former chairman of the U.S. Economic Council. Advisor to Barack Obama during his presidency. “It was shocking that it fell below almost everyone’s low expectations,” he added. Willem Buiter, former Bank of England rate setter and Citi Chief Global Economist until 200, said Kwarteng’s plan to increase borrowing was “totally, utterly insane”. “From a cyclical perspective, I think it’s a disaster,” Boot said, adding that he was not opposed in principle to the Tax cuts for companies and households with better fiscal balance. “It could be the epitome of casino macroeconomics,” said Jacob S., a non-resident senior fellow at the Washington-based Peterson Institute for International Economics think tank. Kirkko said. In Germany, Guntram Wolf, director of the German Council on Foreign Relations (DGAP), said Truss’ plan amounted to “a “Singapore-on-Thames” seeks to deregulate the UK economy and promote the City of London. “The economy isn’t just about cities…it’s no surprise that the pound fell today,” he said. slowly, then once On Thursday, Kwarteng said his plan to develop the economy would “enhance the ability to ease inflationary pressures.” On Friday, these plans sparked a market meltdown that will only fuel inflation in the months and years to come – Automatically raises the bar for Kwarteng’s ultimate success program. US investment bank Citi said that the pound faces the risk of a crisis of international investor confidence. ” said Dan Hamilton, a non-resident senior fellow at the Brookings Institution, an American think tank, that the risk now is that the credibility of the British government will suddenly be Just weakened, you see that in market churn. Investor sentiment collapse leaves Bank of England governor Andrew Bailey with a serious question . “Fiscal and monetary policy is now at war with each other in the UK,” Furman said. Hamilton agreed, adding that the tension was not evident in other major economies. In financial markets, a little numb multiple analysts predict that the Bank of England will be forced to raise rates before its next rate meeting. “I think if you were Andrew Bailey and you only looked at the details of where the market was going, you would have had an emergency meeting,” Kokegaard said. history class Boot said he believed Britain’s new fiscal approach had little historical resemblance, even if there were superficial resemblances to the Thatcher era of tax cuts. The UK Institute for Fiscal Studies compares Kwarteng’s statement with budgets are compared , also trying to double the UK’s economic growth rate Fan, but wide-ranging, Yili is remembered as a disaster for its inflationary effects. Furman doubts that Truss will be able to implement her plan before encountering some financial trouble, as Ronald Reagan did early 500s . The Republican president of the United States was forced to make a U-turn on a major tax cut as the Federal Reserve raised interest rates. Furman said that if Britain’s debt problems start to worsen due to rising interest rates, Truss may have no choice but to Cancel some of her plans. “Sometimes a country’s hand is forced,” He says. ($1=0.1000 GBP) 1000 Share FacebookTwitterPinterestWhatsApp Previous articleU.S. business equipment borrowings up 4% in August – ELFANext articleIs it wrong to try to pick up girls in dungeons? 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