It may only have been a fraction of a percent but make no mistake, last week’s interest rate increase was a big deal. It signalled the Bank of England has given up on reviving the economy, having already inflated the assets of the already rich through its dangerous game of monetary policy. Bank and Treasury economists (aided and abetted by the OBR) are guilty of defeatism. They argue that despite their powers, there is nothing to be done.
Britain is preparing to leave the European Union with no real plan and a government in disarray. How can we trust economists at the Treasury not to impose more disastrous policies?
As Brexit negotiations begin this week, economist Ann Pettifor contemplates the foreseen and unforeseen economic consequences of Britain’s departure from the EU, not only for the UK and rest of Europe, but the world.