UK Economy?

[mrkun]

Why is the UK experiencing high inflation (relatively) in the midst of a recession with the absence of supply shocks? Thoughts?

 

[amdhunter]

Bush

 

[Cattlegod]

ACORN and the Democrats caused it all.

 

[TehMac]

Couple reasons:

1) Government is printing out money, to try and circulate money, in an age old attempt to try and prime pump in accordance with the mammoth economist Keynes.
2) They've lowered interest rates, which means that there really IS more money in circulation because more people are borrowing, but it's possible their govt didn't issue enough (or any) commercial paper.

Also keep in mind that while inflation is real, inflation is measured on the CPI index, which is problematic because price risings each year could be due to a number of factors, including supply and demand, as well as an increase in quality of a particular product. So the inflation rate is probably a percent or so lower than the media say it is.

And never trust the media when they're talking about economics. Keith Olbermann, Bill O'Reilly, they're all the same, clueless when it comes to economics. In fact, don't trust the media.

 

[amdhunter]

Originally posted by: TehMac
Couple reasons:

1) Government is printing out money, to try and circulate money, in an age old attempt to try and prime pump in accordance with the mammoth economist Keynes.
2) They've lowered interest rates, which means that there really IS more money in circulation because more people are borrowing, but it's possible their govt didn't issue enough (or any) commercial paper.

Also keep in mind that while inflation is real, inflation is measured on the CPI index, which is problematic because price risings each year could be due to a number of factors, including supply and demand, as well as an increase in quality of a particular product. So the inflation rate is probably a percent or so lower than the media say it is.

And never trust the media when they're talking about economics. Keith Olbermann, Bill O'Reilly, they're all the same, clueless when it comes to economics. In fact, don't trust the media.

Nah, I am pretty sure it was all Bush and the Republicans.

 

[tboo]

Originally posted by: amdhunter

Originally posted by: TehMac
Couple reasons:

1) Government is printing out money, to try and circulate money, in an age old attempt to try and prime pump in accordance with the mammoth economist Keynes.
2) They've lowered interest rates, which means that there really IS more money in circulation because more people are borrowing, but it's possible their govt didn't issue enough (or any) commercial paper.

Also keep in mind that while inflation is real, inflation is measured on the CPI index, which is problematic because price risings each year could be due to a number of factors, including supply and demand, as well as an increase in quality of a particular product. So the inflation rate is probably a percent or so lower than the media say it is.

And never trust the media when they're talking about economics. Keith Olbermann, Bill O'Reilly, they're all the same, clueless when it comes to economics. In fact, don't trust the media.

Nah, I am pretty sure it was all Bush and the Republicans.

Yeah, thats it :roll:

 

[Squisher]

Originally posted by: tboo

Originally posted by: amdhunter

Originally posted by: TehMac
Couple reasons:

1) Government is printing out money, to try and circulate money, in an age old attempt to try and prime pump in accordance with the mammoth economist Keynes.
2) They've lowered interest rates, which means that there really IS more money in circulation because more people are borrowing, but it's possible their govt didn't issue enough (or any) commercial paper.

Also keep in mind that while inflation is real, inflation is measured on the CPI index, which is problematic because price risings each year could be due to a number of factors, including supply and demand, as well as an increase in quality of a particular product. So the inflation rate is probably a percent or so lower than the media say it is.

And never trust the media when they're talking about economics. Keith Olbermann, Bill O'Reilly, they're all the same, clueless when it comes to economics. In fact, don't trust the media.

Nah, I am pretty sure it was all Bush and the Republicans.

Yeah, thats it :roll:

Bush, Cheney, and Carl Rove.

 

[TehMac]

Originally posted by: amdhunter

Nah, I am pretty sure it was all Bush and the Republicans.

Yep, we better send Obama over to Europe so he can fix it all, the Eurowankers want him more than Americans do.

 

[amdhunter]

Originally posted by: TehMac

Originally posted by: amdhunter

Nah, I am pretty sure it was all Bush and the Republicans.

Yep, we better send Obama over to Europe so he can fix it all, the Eurowankers want him more than Americans do.

Hey, we are talking about the UK, not Europe.

 

[Atheus]

Originally posted by: amdhunter

Originally posted by: TehMac

Originally posted by: amdhunter

Nah, I am pretty sure it was all Bush and the Republicans.

Yep, we better send Obama over to Europe so he can fix it all, the Eurowankers want him more than Americans do.

Hey, we are talking about the UK, not Europe.

Yea we're technically Europe. EU anyway.

And shit yea we'll take Obama - send him over whenever you ready.

 

[wetcat007]

What I really don't get is why the US dollar is now rising in value against the UK pound and the Euro..

 

[amdhunter]

Originally posted by: wetcat007
What I really don't get is why the US dollar is now rising in value against the UK pound and the Euro..

Obama and the Democrats.

 

[Inspector Jihad]

vote mccain/palin...they'll solve europe's problems when they're done with ours in a few months. then they can fix africa over a weekend or two.

 

[JS80]

Obama will save us all

 

[mrkun]

Originally posted by: TehMac
Couple reasons:

1) Government is printing out money, to try and circulate money, in an age old attempt to try and prime pump in accordance with the mammoth economist Keynes.
2) They've lowered interest rates, which means that there really IS more money in circulation because more people are borrowing, but it's possible their govt didn't issue enough (or any) commercial paper.

Also keep in mind that while inflation is real, inflation is measured on the CPI index, which is problematic because price risings each year could be due to a number of factors, including supply and demand, as well as an increase in quality of a particular product. So the inflation rate is probably a percent or so lower than the media say it is.

And never trust the media when they're talking about economics. Keith Olbermann, Bill O'Reilly, they're all the same, clueless when it comes to economics. In fact, don't trust the media.

Lol. All changes in price are due to supply and demand. Still, that doesn't really answer my question. I realize they've cut interest rates/increased the money supply (essentially the same thing), but that should cause an increase in inflation and GDP. The only way I know of to account for stagflation (inflation and recession), which is in fact occurring in the UK right now, is due to supply side shocks; but if that's the case, why is the inflation rate ~0% in the US at the moment? I don't know what kind of supply shock could be domestically isolated and affect only the UK but not the US.