Themabericht
Outlook 2014 - United Kingdom (Engelstalig)
There are signs that UK’s economic activity is gathering momentum. But the recovery is not on a solid footing yet and, therefore, needs to be nurtured.
Themabericht
There are signs that UK’s economic activity is gathering momentum. But the recovery is not on a solid footing yet and, therefore, needs to be nurtured.
Economisch commentaar
Moody’s decision to downgrade the UK’s government bond rating should not come as a surprise to investors. That said, the lower rating is a huge blow for Mr. Osborne since his austerity plan was partly based on maintaining the AAA-rating of the UK.
Themabericht
There is an on-going debate in the UK regarding the merits of nominal GDP targeting. Of course, ‘out-of-the box’ thinking is welcome but the risk of switching to a new policy framework is high because it can destabilise inflation expectations.