Subscribe to The Money StopNews Feed

Browse > Home / News / Worst of recession could be over according to economist

Worst of recession could be over according to economist

May 19, 2009 by admin  
Filed under News

Leave a Comment

One economist, who has recently become a member of the powerful Monetary Policy Committee, stated that the worst of the recession for Britain could be over.

He said that this is because of the various emergency measures that the government has taken, adding that the future of the economy in Britain looked much brighter because of measures such as interest rate cuts, quantitative easing, and public spending increases.

This came from the newest member of the MPC, David Miles, who has taken over from David Blanchflower. Miles stated: ‘Economic history teaches us that a combination of tax cuts, running large fiscal deficits, substantial cuts in interests rates and more quantitative easing is likely, with a certain time lag, to have a substantial impact on demand in the economy.’

He went on to state: ‘It may well be that the worst of the recession may well be behind us. That’s not a confident prediction but a judgment about what may be the case. Again, it’s early days but the early signs are that it is having an impact.’

However, even Mr Miles admitted that there were concerns with regards to the fall in business lending in the UK, and this comes at a time when ministers have slated the bailed out High Street banks for failing to increase lending to businesses, which they have described as failing Britain and its economy, despite taking billions of pounds worth of taxpayers’ money by way of a bailout.

Not everyone has shared Mr Miles’ optimist about the future of Britain, with some industry officials and economist predicting that the recession is set to stretch on beyond this year, and that Britain will be one of the countries to suffer most from the ongoing recession.

Tags: Macroeconomics, economist, interests rates, certain time lag, credit crunch, rate, way, recession over

Tags:

Related Entries

  • Britain facing recession by end of year
    • Over recent weeks a number of industry professionals and groups have said that Britain will slide into recession by the end of the year. The latest warning comes from the European Union, which has warned
  • Slowdown in rate of firms going bust
    • A recently released report has shown that the rate of firms that are going bust in the UK has been slowing down. However, despite this news it has also been revealed that the level of
  • Recession over for UK
    • It was announced last week that the UK has finally come out of recession. All of the other major economies had already come out of recession, with the UK left lagging behind but following the
  • Claims figures show BMW drivers not worst on road
    • According to a recent report many motorists think that the worst drivers on the road are those that drive BMWs. However, recently released figures relating to insurance claims have suggested that this is not the
  • Credit crunch leaves High Streets more deserted
    • It has been claimed that the ongoing global financial crisis and the recession have resulted in the High Streets of Britain being left more and more deserted, as a rising number of shoppers decide to
  • Branson not happy about bailouts for other firms
    • Successful and world renowned businessman Sir Richard Branson has recently expressed his views on the topic of the government using taxpayer's money to bail out other businesses in addition to the financial industry. With the
  • Is the recession finally over?
    • To many people it may feel as though the UK has been stuck in recession forever, and the recent recession has resulted in many businesses and consumers suffering hugely as a result of job losses,
  • London’s size responsible for title of worst city for card fraud
    • The size of London and its population are the main reasons behind its recent labelling as the UK's worst city for credit and debit card fraud, one financial expert claims. According to payments association APACS,

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!