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Reuters Breakingviews: UK’s self-perpetuating economic trap

Friday, March 15, 2013 - 04:12

Mar. 15 - The UK’s flexible currency does not mean the economy is flexible, says Reuters Breakingviews. And that’s what really matters.

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So stunning -- courts are apparently in a self perpetuating economic trap pool vortex according to -- his breaking views joining me is Robert code explain why. This is an Edwards had -- -- yesterday's forum with another -- today -- -- come on so I'm just explain this this vortex of that list -- and well. You I'm I'm I'm -- wouldn't want would love to be the loss to simplify economics. That's. -- but it's I'm not I would want to fall into that trap by but essentially what we told you about here is the son. It's lemon economic moment that. If the currency goes down inflation goes up advice and and vice Versa and I'm I'm I'm on Edwards pointing out here to slightly more. Elaborate kind of why is that. Unit as inflation. Goes up sterling goes down but I steadily goes down in place and does not so you get yourself into that kind of mixture and and importantly. In that mix as well is obviously what's happened to. Two decades and it is in the caddie and to grow rugs. And neither of those. Economic factors in terms of the currency. And inflation right on helping -- contrary to what many people might think and contrary to what memories of the 1990s to -- month month month -- So. And then Adam thinks this -- content and -- things -- -- monitoring for continues absolutely that doesn't attending tonight at told. You know I think that you had that they've as a -- ever -- reference via the -- -- in the early nineties. You know it was cool black Wednesday well quite quickly apply a lot of people -- -- clue what winds -- the currency went down. And some -- some kind of -- Significance but what economic growth and I think that's such as the circumstances. Office citing. And it's interesting particularly given. The British. Opposition continued opposition will be speaking to you our membership. So you know a -- that you could be advantageous standing outside the U -- from Britain. Was that -- to have a flexible currency was a good thing and that proved sort of let's say right in the 1990s. But yet the victim the pound is proving to be very very flexible of the moment. Falling and falling and falling. But it doesn't necessarily mean that the economy's flexible and that's what's really important. Things -- Melvin king has has chimed in -- arm. Is of sentences experts expect these increases that snapple. That's easy for him to say now he's on the way -- definitely Dauman. Really if -- definitely because I mean he he he is him views about his qualities to battery on. Police pulled about sleep but in -- the danger of any central -- talking about the currency is that it that it role. And that area influence. Which is not insignificant. Is I've written file -- the fact is now as a slogan doesn't really have to worry so -- not trust his credibility because. -- my little boy is -- to -- that instantly on a can't see any evidence of ours alone to be sentiment in the missiles the ironies Annette Collins out. A few pounds but things but the point hit the -- and make yours is very bad and dangerous territory the central bankers. To get him to trust told them. Currencies up. All down to simply because it doesn't perhaps some leverage but not very much leverage -- more important for central bankers of nine -- in that sort of credibility. And these sort of circumstances that credibility and he really be nine times the B ones trot out. Pop acts are heroic I salute you by both both those pieces on the breaking news website of course. Passed for more agenda setting inside. Out of the US what -- show from that every day 12:30 eastern 1630 GMC. I'm -- problems is ours.

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Reuters Breakingviews: UK’s self-perpetuating economic trap

Friday, March 15, 2013 - 04:12

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