“The Obama effect will help..”
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RECESSION: Britain went into recession at the end of last year for the first time since 1991, data confirmed on Friday (16/01/09), showing the economy shrinking by 1.5 percent in the final quarter of 2008, the biggest contraction since 1980.
EMPLOYMENT: we’re at 1.92 million now. It would be hard to think we would not get to 3 million, perhaps in a year’s time. If you take the experience of previous recessions, 3 million might be optimistic.
FALLING INFLATION: despite the threat of deflation, falling inflation is helping the recovery. 
OUTLOOK: as inflation falls then real wages improve. Economies recover when positive real wage growth starts to kick in. People start to respond to lower prices.”
LONDON (Reuters) – Bank of England Monetary Policy Committee member David Blanchflower was quoted on Sunday (25/01/09) as saying interest rates still had a way to go if they are to follow the United States, where rates are close to zero….
“Part of it is that oil and gas prices have come down but there is also a feeling that the turn has come. I know there are difficulties in the banking sector and in the markets but people feel. If we have a turnaround in America, that will feed over to Britain.”
“The Obama effect will help..”
Let’s all hope it does..
