Gordon Brown's secret weapon
Article Abstract:
The United Kingdom chancellor, Gordon Brown, can intervene in the market for foreign exchange using the UK's reserves. It is unclear whether this will affect the level of pound sterling. Some economists argue that it does not, while others argue that expectations are changed, so intervention can have an impact, especially if a currency is undervalued or overvalued. It is not clear that pound sterling is overvalued, so the government may be advised to wait until it rises further if it is to intervene.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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Wild goose chase of economic stability
Article Abstract:
Governments seek to achieve economic stability through macro-economic policies and this is seen as a way of encouraging investment. The UK economy s stable in the 1990s, yet investment levels are low compared with the 1980s. Stable growth and lack of capacity constraints are not necessarily likelyto promote investment. Instability can lead to inflation, though this was linked to sharp rises in petroleum prices in the 1970s, which led to inflation and recession.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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