U.K. Services Unexpectedly Sustains Pace of Expansion in May
Posted by WARREN MOSLER on June 7th, 2012
Some hints the deficit may be large enough to sustain some growth.
No doubt this will be spun as ‘see, austerity works’, when the same deficit could have been achieved proactively with a tax cut and/or spending increase before the austerity increased the deficit the ugly way, via depressing GDP and elevating unemployment.
Headlines:
U.K. House Prices Rise as Halifax Sees Stagnation in Second Half
U.K. Retail Sales Increased in May on Warm Weather, BRC Says
U.K. Services Unexpectedly Sustains Pace of Expansion in May
June 7th, 2012 at 9:50 am
Isn’t this bump a result of exchange rate shifts of euro financial assets into a safe haven?
Can’t find the link.
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Winslow R. Reply:
June 7th, 2012 at 10:54 am
The CEBR said: ‘Re-intensification of European financial turmoil in the last quarter has further boosted international demand in UK property, with wealthy investors seeking safe havens for their assets.’
http://www.dailymail.co.uk/news/article-2154637/Divide-North-South-house-prices-grow-wider-predicts-new-research.html
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WARREN MOSLER Reply:
June 7th, 2012 at 3:36 pm
that wouldn’t be counted as sales/gdp/etc
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Winslow R. Reply:
June 7th, 2012 at 3:53 pm
@WARREN MOSLER, I’m sure either of us could write a microeconomic story where it would.
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